Citing the RM85.5 million allocated to the Special Affairs Department (JASA), RM8.6 million for Penggerak Komuniti Tempatan, RM1 billion for a “special project” under the prime minister’s office, and RM13.61 billion under the finance ministry for “various capital injections” in the budget, he said the collective funds of over RM14 billion could be of great help to those who are most in need.
Santiago added that with the funds benefitting the people, Malaysians will not even have to withdraw from their Employees Provident Fund (EPF) Account 1, which is meant to serve as their retirement savings.
“Can the government revamp this budget? For a start, it can transfer funds to support workers by eliminating or re-evaluating these budget proposals.
“The government has the funds. But does it have the political will to support the people who need it most?
“Or is Muhyiddin Yassin’s administration taking the easy way out by transforming EPF savings, a retirement fund, into an emergency fund?” he said in a statement today.
Finance Minister Tengku Zafrul Aziz had recently revealed that around 32% of EPF contributors have less than RM5,000 in their Account 1, with another 10% having between RM5,000 and RM10,000.
EPF itself revealed around 65% of contributors below 55 years old had less than RM50,000 of savings, while 60% of retirees had used up all their savings within three years of retiring.
Santiago said these figures showed that a significant number of workers lived in poverty, while more reductions on their savings would lead to a total loss of financial security after retirement.
“The combined withdrawals will have an impact on the future earning capacity of workers through a loss of dividends, plus the compounding interests in lost savings. It will also wipe out financial security for old age,” he said.
The government plans to allow those who have lost their jobs during the pandemic to make targeted withdrawals of RM500 a month for a maximum of 12 months from their EPF Account 1 from January.
Previously, Putrajaya had allowed contributors to withdraw a maximum of RM500 a month from Account 2 under the i-Lestari facility, which was implemented in April.