FMM group not in favour of proposed increase in EPF contributions

PETALING JAYA: Mandating all employers to provide a higher Employees Provident Fund (EPF) contribution rate will be detrimental, especially for small and medium enterprises (SMEs) that make up 97% of businesses, say business owners.

The Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said the group was not in favour of the proposal to increase employers’ EPF contribution to boost workers’ retirement savings, especially during the current challenging economic period where the outlook was uncertain as global growth remained fragile.