EPF contribution cut to boost domestic demand, says Zeti
Publish date: Thu, 28 Jan 2016, 03:20 AM
KUALA LUMPUR: The cut in the employees' contributions to the Employees Provident Fund (EPF) is to boost domestic demand, said Bank Negara Malaysia (BNM) Governor, Tan Sri Dr Zeti Akhtar Aziz.
She said domestic demand has been the driver of the country's economy during previous global slowdown and last year.
However, she said, the government had identified moderation in domestic demand and the EPF's employee contribution reduction measures was to stimulate domestic consumption.
"What the government is doing is putting money in the hands of the consumers. This is done through this (EPF contribution reduction)," she said in a forum on '2016 Budget Recalibration' here today.
Zeti said the government, however, acknowledged the importance of saving for retirement and thus the measure was only for a temporary period from March this year until December next year.
"The measure is temporary, just for this year and next year to support the economy," she said.
In the budget recalibration announced by Prime Minister Datuk Seri Najib Tun Razak today, the government agreed to reduce the employees' contributions to the EPF by three per cent which is expected to increase private consumption expenditure by RM8 billion a year.
The reduction, however, did not involved employers' contributions. --Bernama
Discussions
2 people like this. Showing 16 of 16 comments
pelik...memang pelik.....
cut EPF 3% not as good as cut entire supply chain and GST 3%........
I use my knee also can think... why GOMEN wanna buli and tipu?
2016-01-28 17:38
Hahaha... all never read properly. Don't understand between cutting the minimum EPF REQUIREMENT by 3%.
2016-01-28 18:11
Talk with fact.. Just optional...
Source from EPF website : Reduction in Employees’ Statutory Contribution Rate 2016
KUALA LUMPUR, 28 January 2016: Following Prime Minister YAB Datuk Seri Najib Tun Abdul Razak’s announcement during the presentation of the revision of Budget 2016 today, the Employees Provident Fund (EPF) announces the reduction in the employees’ monthly statutory contribution rate from 11% to 8% for members below age 60 and 5.5% to 4% for those age 60 and above, effective March 2016 until December 2017 salary.
However, members can opt to maintain the current contribution rate of 11% by completing the “Notis Pilihan Mencarum Melebihi Kadar Berkanun (KWSP 17A Khas2016)” and submit to their respective employers, who will then forward it to the nearest EPF branch.
Members and employers can download the Notis KWSP 17A Khas2016 from the EPF’s website at www.kwsp.gov.my from 2 February 2016 onwards. The new monthly contribution rate (Schedule Three) can be downloaded from 16 February 2016 onwards.
There is no change to the employers’ statutory contribution rates.
About the Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions.
As a customer-focused organisation, the EPF delivers efficient and reliable services for the convenience of its members and registered employers.
The EPF continues to play a catalytic role in the nation’s economic growth, consistent with its position as a leading savings institution in Malaysia.
2016-01-28 18:59
hahahaha
Pakcik Saham..thanks for sharing....
I think all pretend ....in fact everyone knew it.....
ppl complain about to FILL UP the form if wan to remain contribution at 11% but not the other way round....... not supposed if wan to change(reduce) to fill up form???? May be you have ur view .....
2016-01-28 19:01
Tak kena mengena dgn saya. I hanya buat caruman dalam tin simpanan masa tua saya sendiri
2016-01-28 19:48
Pakcik Saham...
U have a valid point.. Like it.... I malas punya and hanya minimu wages.. so 8% or 11% I also very sad...
2016-01-28 21:43
duitKWSPkita, simple economic theory Y= C+I+G ( C= Household consumption + investment+ Gov Expenditure)...my opinion.. if iam Employees i will reduce my contribution to EPF and used this money wisely or try get other investment can give better ROI. ROI for EPF around 6 % only. The important think The government must find ways to attract foreign direct investment(FDI) and stop the negative sentiment to ensure economic growth(Y). Otherwise malaysia will lag behind other Asian countries such as Vietnam.
2016-01-28 21:48
Pakcik Saham....I like to see Ringgit rebound and I like to see Malaysian getting better life
2016-01-28 21:52
duitKWSPkita ..yup all malaysian already suffer..
we pray together & hope our malaysian & people get better life
2016-01-28 21:58
Insya allah.... AMIN Pakcik Saham..
semoga tuhan merestui harapan kita
2016-01-28 22:05
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THIS IS A GOOD MOVE.
IT FREES UP LIQUIDITY IN THE SYSTEM.
ZETI HAS BEEN VERY WISE!
2016-01-28 17:04