THE recent remarks by the EPF that higher wages should be considered for workers in Malaysia is a step in the right direction. It also warned that increasing workers’ EPF contributions is not the best way for the nation to move forward, as the current percentage is among the highest in comparison to other countries. Instead, steps should be taken to ensure that wages are raised in line with the aspirations of a country aiming for developed nation status.
Increasing the EPF contribution is definitely the easiest way to raise savings, but it will not contribute to the progress of the nation over time. In fact, there is even the danger that investors will shy away for fear that employers have to pay a higher EPF rate, rendering the business environment unprofitable in the long term.
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