Business chambers call on govt to allow 11% EPF contribution withdrawal

KUALA LUMPUR (March 24): The Malaysia-China Chamber of Commerce (MCCC) and Malaysian Islamic Chamber of Commerce (MICC) is asking the government to allow active contributors of the Employees Provident Fund (EPF) to withdraw their 11% contribution to the fund over the past six months.

This is to help ease their burden and to provide a safety net for individuals, families as well as businesses during the movement control order (MCO), the two chambers of commerce said in a joint statement today.

The statement came after Prime Minister Tan Sri Muhyiddin Yassin announced yesterday that members of the EPF will be allowed to withdraw a maximum of RM500 from Account 2 every month for 12 months beginning April, which forms part of a more comprehensive economic stimulus package and people's aid that is set to be unveiled next Monday (March 30).

The move, according to Muhyiddin, is expected to benefit some 12 million EPF members below the age of 55 and involve an estimated RM40 billion.

While lauding the government's efforts, MCCC and MICC said more must be done, especially if the MCO that began on March 18 is to be extended beyond March 31.

On top of the EPF withdrawal, the organisations called for RM1,200 monthly aid for Bantuan Sara Hidup recipients during the MCO, as well as sufficient support for daily income earners that include millions of foreign workers to ensure social order and no eruption of crimes.

There must also be sufficient subsistence and/or social support for other marginalised sectors, including the homeless, refugees, mental patients and victims of family violence, they said.

Additionally, they said social distance efforts will be more effective if the government coordinate the private sector to speed up the procurement and production of test kits, personal protective equipment, ICU equipment, ventilators, gloves and face masks and ensure their optimum distribution.

“Where local production is possible, the Government should organise all manufacturers — and rope in other businesses that can convert some of their operation to join in production — to maximise production, for coordinated distribution at one common price.

“For face masks and other supplies sought by ordinary citizens, the government should fix an affordable price (with subsidies to absorb the difference from cost price when necessary) and restricting purchase limit to consumers using colour IDs to stop hoarding,” it said.

To avoid panic buying, MCCC and MICC said there must be no disruption or sign of disruption to food and other essential services.

It also said the government must enhance inter-ministry coordination to have a unified messaging and directive from a single source instead of multiple ministries issuing uncoordinated and sometimes conflicting statements. 

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