FORMER Klang MP Charles Santiago has proposed that the RM100 cash aid announced for all Malaysian adults last month be channelled instead to 6.3 million Employees Provident Fund (EPF) contributors who have less than RM10,000 in their accounts.
In a statement today, Santiago questioned the long-term value of the one-off payout, arguing that the government missed a chance to rebuild the retirement safety net for EPF contributors.
He said low wages have forced many Malaysians to dip into their EPF savings before retirement and a targeted injection by Putrajaya would go a long way towards rebuilding Malaysians’ retirement fund.
He noted that Singapore’s Central Provident Fund (CPF) system includes employer contributions and regular top-ups by the state, especially for low-income workers and seniors.
"It’s a system designed to support people through retirement, not leave them scrambling to survive. That’s the difference: long-term thinking versus short-term patchwork.
“Imagine if that entire budget had been used to top up EPF accounts. That would’ve been bold, targeted, and something to cheer about," he said.
He said the EPF, originally designed as a retirement fund, has over the years been repurposed to help Malaysians cope with low wages and rising costs, especially during the COVID-19 pandemic.
He said continued withdrawals have left millions with dangerously low savings.
“Retirement shouldn’t mean poverty. To make the (Malaysian) system stable, there must be regular top-ups from the government or employers, and through broader social protection schemes.
“Without fresh contributions, no retirement model can survive.”
In 2023, Prime Minister Datuk Seri Anwar Ibrahim said 6.3 million EPF members, or 48% of those under the age of 55, had less than RM10,000 in EPF savings.
“It’s time for thoughtful, fair reform; one that aligns policy with the realities people face.
“Don’t just redesign the EPF. Rebuild the foundation, so every Malaysian has a real chance at retiring with dignity and security,” he added. – August 5, 2025
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