KUALA LUMPUR – Klang MP Charles Santiago today proposed that the government use billions in Budget 2021 allocation to help Malaysians who have lost their jobs.
He cited the RM85.5 million set aside for the Special Affairs Department, Prime Minister’s Office special projects (RM1 billion), Finance Ministry capital injection (RM13.61 billion) and Penggerak Komuniti Tempatan (RM8.63 billion).
“The government has the money, but has it got the political will? I think Prime Minister Tan Sri Muhyiddin Yassin doesn’t have the political will to take the money and give it to the workers who need it most.
“It’s a political issue, not a fiscal one,” he told a media conference after the Dewan Rakyat sitting today.
“It (the government) has no qualms allocating millions of ringgit to projects that can be considered propaganda and political in nature, putting up buildings to promote individual personalities, or appointing a 70-person cabinet.”
Santiago said this is not the first time the government has allowed Employees Provident Fund (EPF) contributors to dip into their savings.
“Earlier this year, EPF contributors were allowed to withdraw RM500 monthly, up to RM6,000 from their Account 2 under the i-Lestari programme," he said.
“In 2018, EPF estimated that 38% (2.8 million members) of the 7.36 million members did not have enough money in their Account 2 to withdraw the maximum RM500 a month, or RM6,000 per year.
“A further 18.8% EPF members or 1.38 million contributors did not have a total of RM6,000 saved up as at end-2018 to take advantage of their i-Lestari funds.
“About 65% of EPF contributors aged 54 and below only had savings of less than RM50,000. And approximately 60% of retirees used up their EPF savings within three years of retiring.”
Santiago said this indicates that a significant number of workers are in poverty.
“The combined withdrawals will have an impact on the future earning capacity of workers through the loss of dividends, plus the compounding interests in lost savings.
“It will also wipe out financial security for old age.” – The Vibes, November 16, 2020
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