Pakatan Harapan supported a call by the Malaysian Trades Union Congress (MTUC) that the rate of Employees Provident Fund (EPF) divident is raised higher in 2016.
For Pakatan Harapan the raise is in line with the rising cost of living, the rising cost of public transport and slower wage rate increases, coupled with the impact of the Goods and Services Tax (GST). Overall 10 million private sector workers expect good dividends from the fund because it is the only source of their savings.
We also have observed that the EPF declared a dividend rate of 5.70% for 2016, with a total income distribution of RM37.08 billion compared to 2015 of 6.4% is misses with the government target that wants people to have a high savings rate in the old days.
Pakatan Harapan also sees that the dividend decrease is attributed to investment in debt-laden companies, namely 1Malaysia Development Berhad (1MDB) of RM1.72bilion.
Therefore, Pakatan Harapan disposes of immediately calling the EPF holdings and investments in the 1Malaysia Development Berhad (1MDB) mainly in bonds to protect the interests of contributors. EPF now is facing financial problems that ultimately affect the contributors and depositors. EPF investment of RM1.72 billion is a large amount, especially when these funds are the people’s savings that are managed by EPF.
Before this, Deputy Finance Minister II, Datuk Johari Abdul Ghani said that the EPF’s investment in 1MDB did not give any risk. However 1MDB bonds held by EPF involve interest rates that are much higher than bonds of government institutions, reaching twice as high as 9.85 percent.
1MDB’s financial problems have become a big financial risk not only to the company, but also to the whole of the State Treasury. Moreover 1MDB risk of “cross default” (failure to pay the debt in a row when 1MDB failed to pay a debt) which would bring significant impact on the country’s financial system.
Other than EPF, Pakatan Harapan urged government agencies such as Tabung Haji and the Pension Trust Fund (KWAP) also divest and 1MDB investment in order to protect the interests of contributors.
PAKATAN HARAPAN:
Dr. Dzulkefly Ahmad
Parti Amanah Negara (AMANAH)
YB Wong Chen
People’s Justice Party (PKR)
YB Teresa Kok
Democratic Action Party
(DAP)
PAKATAN supports MTUC's call to raise EPF dividend
