MTUC gives the thumbs-up

KUCHING: Malaysian Trade Union Congress (MTUC) Sarawak secretary Andrew Lo has commended the Sarawak government for providing a monthly RM250 cash assistance for six months to those in the B40 (low-income) category as part of the Sarawakku Sayang Special Aid Package.

This special aid package worth RM1.15 billion and comprising 16 measures was announced by Chief Minister Datuk Patinggi Abang Johari Tun Openg on Monday (March 23) to alleviate the impact of the Covid-19 pandemic.

“Such assistance is better than nothing and is welcomed. It is sad that we have 430,000 of them (Sarawakians from the low-income category) – almost 30 percent of the economically active population,” he said.

This measure would cost the Sarawak government RM645 million.

Meanwhile, he described the federal government’s initiatives of reducing Employees Provident Fund (EPF) contribution rates and allowing EPF contributors to withdraw RM500 monthly over a year as ‘irresponsible’.

“MTUC is very disappointed at the government’s insistence to exploit workers’ already meagre EPF savings to bail out the economic malaise caused by the Covid-19 pandemic,” Lo said, stressing that this was the people’s money.

He said that almost 33 percent of active EPF contributors had less than RM6,000 in their second account as at December 2018, while 28 percent had less than RM10,000 of total EPF savings.

He pointed out that most of the B40 group fell into this category.

He felt that the government was taking the easy way out and showing a lack of leadership.

“It is a result of years of incompetent economic management. At times like these, brave fiscal policies and able leadership are needed, not a knee-jerk reaction,” he said.

Lo advised all EPF members to elect to maintain the monthly contribution rates and not to make the monthly withdrawal.

“Nobody is going to take care of them in their old age,” he said, adding that the government had to provide assistance.

Prime Minister Tan Sri Muhyiddin Yassin announced on Monday (March 23) that EPF contributors below the age of 55 would be permitted to withdraw RM500 per month from their savings for a period of 12 months.

He said that this initiative was aimed at easing the financial strain caused by the Covid-19 pandemic, and advised the people to use the money wisely by purchasing necessities.