MTUC secretary-general Kamarul Baharin Mansor criticised a business group which claimed that a million workers in micro, small and medium enterprises (MSMEs) would be laid off if the employers’ contribution rate was raised.

“The increase in EPF contribution is not to enrich workers so that they can own luxury houses or cars, but simply to support them in their old age. This claim is not based on facts. They are just trying to create a bad perception of the government,” he said in a statement.

He hoped Putrajaya would go ahead and get employers to increase their EPF contributions, adding that the people stood to benefit the most.

On Monday, Prime Minister Anwar Ibrahim said the Cabinet would discuss a proposal to increase the employers’ EPF contribution following demands from various unions for such an increase to boost employees’ retirement funds.

This was opposed by the Malaysian International Chamber of Commerce and Industry (MICCI), Federation of Malaysian Manufacturers (FMM), and the Malay Chamber of Commerce Malaysia (DPMM), which said businesses would be forced to bear greater costs.

DPMM also claimed that about one million workers from MSMEs risked losing their jobs if Putrajaya implemented the proposal.