Date of publication: Oct 26, 2013
Section heading: Main Section
Page number: 003
THE proposed increase in government contribution to the 1Malaysia Retirement Scheme from five per cent to 10 per cent effective Jan 1 next year will serve to spur the participation of more Malaysians to buy into retirement schemes.
Employees Provident Fund deputy chief executive officer Mohamad Nasir Ab Latif said the scheme was introduced on Jan 1 2010 for individuals who are self-employed and those without a fixed monthly income to save with the EPF in preparation for their retirement.
As of August this year, 65,847 Malaysians have participated in the scheme, with savings totalling RM242.2 million.
"The government's move to increase the contribution to a maximum of RM120 from RM60 a year will undoubtedly encourage up to 30,000 new members to participate in the scheme," he said in a statement yesterday.
"EPF also applauds the government's effort to undertake a holistic review of the tax system by introducing the goods and service tax, expected to take effect on April 1, 2015. This will give ample time for companies and consumers to adjust."
He said that with a broad-based GST, the taxation burden would be more evenly distributed and would help to reduce dependence on petroleum-based revenue.
He also said the EPF was satisfied with the government's prudent financial management of its operating expenditure through continuous subsidy rationalisation programmes as well as cutting down on wastage.
"Rationalising subsidy at a gradual pace is proof that the government is spending more prudently by having a focused target group, that is the low-income households, without burdening consumers."