Don’t obsess over dipping into retirement funds in bad times: bank employees’ union

KUALA LUMPUR – The National Union of Bank Employees (NUBE) slammed the idea of constantly withdrawing funds from workers’ retirement funds whenever disaster strikes the country. 

Even as the country faces a drawn-out Covid-19 pandemic and economic crisis, it was most recently hit by severe floods due to heavy rainfall. 

Several politicians had recently proposed that the people be allowed to withdraw more from their Employees Provident Fund (EPF) accounts to help alleviate their immediate suffering.

In a statement today, NUBE noted that it was however dismissed by Prime Minister Datuk Seri Ismail Sabri Yaakob and Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz. 

It said that allowing the withdrawals from retirement funds would only reflect on the government’s incompetence.

“NUBE certainly sympathises with the plight of the flood victims, but dipping into the workers’ retirement funds during every disaster is not a wise approach,” it said. 

“To be obsessed with dipping into the workers’ retirement funds during every disaster is a sign of an incompetent government. Sadly, the said politicians are from the ruling government,” they said in a statement today. 

NUBE stressed that withdrawals have already been made in the past two years during the pandemic, causing a significant decrease in the EPF account holders’ funds. 

Additionally, it also called for positive changes, especially in ensuring decent living wages and action to fight against institutional corruption, which “has deprived workers of their fair share of the nation’s wealth”. 

NUBE added that a whopping 3.6 million EPF members have less than RM1,000 in savings. 

“It’s rather shocking that a high 28% (3.6 million members) have less than RM1,000 in their savings. 

“We must accept the fact that the lack of sufficient savings is also, inter alia, due to the absence of a decent wage increase for decades, and particularly, the lack of a living wage,” it said. 

It said that the Umno-led government of more than 60 years had failed to increase workers’ wages, causing Malaysia to fall behind neighbouring countries. 

“NUBE hopes that the government led by Ismail Sabri will not repeat the mistake of his predecessors. 

“He should prepare an immediate action plan for a decent living wage for workers so that they will have decent savings for exigencies and an appropriate retirement savings for social protection,” they said. 

A total of RM101 billion has been withdrawn under the three withdrawal schemes up till October last year. 

This amount is equivalent to 22% of the RM530 billion value of the government’s stimulus programme, it added.

“While the withdrawal initiatives provided some financial relief to members during the pandemic and various movement control orders, the withdrawals have inevitably led to 6.1 million members now having less than RM10,000 in their EPF accounts. 3.6 million have less than RM1,000 – a level at which members are not able to guarantee their retirement,” said EPF. – The Vibes, January 4, 2021