COMMENT | Is raising employers' EPF contribution the only option?

COMMENT | In response to Uni Malaysia Labour Centre (Uni-MLC) who had reportedly urged the government to increase the employers’ EPF contribution to 20 percent from the current 13 percent for those earning RM4,000 and below, Prime Minister Anwar Ibrahim said the government would discuss the proposal and bring the matter to the cabinet.

Since then, the issue had received many comments from various parties including the employers’ side such as the Malaysian International Chamber of Commerce and Industry (MICCI), the Malaysian Employers Federation (MEF), SME Association of Malaysia, as well as others including economists and academics. As usual, there are pros and cons to the suggestions.

Before any decision is made by the government, the lawmakers should look at and tackle the issue diligently by considering the impacts of the decisions (short and long term) on the whole communities (employers, employees, and public) as well as the economy as a whole.

Whatever decisions to be made, to accept or reject the proposal, shall have...