KUALA LUMPUR: Putrajaya should allow another round of Employees Provident Fund (EPF) withdrawals instead of crediting RM500 into the retirement funds of those with less than RM10,000, says Datuk Seri Ismail Sabri Yaakob (BN-Bera).
The former prime minister, while thanking the government for the cash injection into the retirement funds, added that this did not solve the issue of many Malaysians being cash-strapped.
“If the contributor is 40 years old, then it means only 15 years later can the person withdraw the money to use. What the people want is (to withdraw) now, not 15 years later,” said Ismail Sabri.
“They are facing hardship now, their houses are being auctioned now, their kids want to go to university now,” he added.
Ismail Sabri said in his speech on Budget 2023 in Parliament on Tuesday (March 7) that such people would be bankrupt if they had to wait for another 15 years.
During the tabling of Budget 2023 last month, Prime Minister Datuk Seri Anwar Ibrahim said the RM500 would be credited into the accounts of EPF members aged between 40 and 54 who have less than RM10,000 in their Account 1.
Anwar had said the programme would benefit two million EPF members with an allocation of almost RM1bil.
Ismail Sabri said the proposal to allow another round of EPF withdrawals - which was also raised by Opposition leaders on numerous occasions - should be given to Malaysians who really need it.
“Make it targeted (withdrawals) and subject to terms by the government. Most importantly, don’t shut your doors on it and continue discussions. Give a chance to those who really need it to continue their lives,” said Ismail Sabri.
Ismail also cited a report by the World Bank global economic outlook report, saying that EPF withdrawals gave a good effect on national economic growth.
Meanwhile, Ismail Sabri added that he was concerned that the proposed luxury goods tax would affect revenue for the tourism sector in Malaysia.
Ismail Sabri cited a Wall Street Journal report, which stated that the United Kingdom's decision to scrap Value Added Tax (VAT) refunds for tourists had adversely affected the country’s retail sector.
“Foreign tourists, particularly from the United States, have chosen Paris and Milan as shopping destinations compared to London,” added Ismail Sabri.
Ismail Sabri also said that shopping in European capitals increased by 80% after the decision by the United Kingdom to scrap the VAT refund for tourists.
He added that neighbouring countries such as Indonesia and Thailand were racing towards becoming the destination for shopping in the region.
Anwar had proposed a luxury goods tax for items such as branded watches and fashion items starting this year as part of the government’s efforts to tackle the country’s rising cost of living.
The proposed tax has since drawn concern from tourism players across the industry, with many fearing that it would cripple the country’s attractiveness as a tourist shopping hotspot.
