GEORGE TOWN: The government must explain how it will safeguard the Employees Provident Fund (EPF), which holds a substantial share of federal government debt, as the debt continues to rise, says Penang MCA.
Its secretary Yeoh Chin Kah said the EPF was responsible for safeguarding its members' retirement savings, and investment decisions must prioritise their interests.
He said the Federal Government's debt reportedly reached RM1.378 trillion as of June this year, with the EPF holding RM420.785bil, or 30.5% of the total in bonds.
Citing the Finance Ministry's 2027 Fiscal Outlook and Federal Government Revenue Estimates report, he said federal debt stood at 63.1% of gross domestic product (GDP) as of June.
"EPF savings are accumulated by workers over many years. The government should address the relationship between rising public debt and retirement security.
"It must prioritise people's welfare and safeguard the substantial amount of hard-earned retirement savings invested in government debt," he said in a statement on Tuesday (Oct 13).
Yeoh added that the government should strengthen fiscal discipline, reduce its reliance on borrowing and ensure public funds are used effectively, noting that prudent debt management is crucial to prevent fiscal pressures from jeopardising the retirement security of millions of Malaysians.
