Collective Effort Needed To Fight Effects Of Covid 19 Says Mier

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The Employees Provident Fund (EPF) Account-1 withdrawal schemes may affect the long-term savings and financial position of the workers, says Sulaiman Mahbob. (Bernama pic)PETALING JAYA: A national, collective effort together with state and local governments is needed for economic recovery during the Covid-19 pandemic, the Malaysian Institute of Economic Research (MIER) said today.
Its chairman Sulaiman Mahbob in his keynote speech at the 7th annual economic and financial policy institute (ECOFI) virtual symposium 2021 organised by Universiti Utara Malaysia suggested that state governments can and must do much more.
“State governments can release land to create jobs – use the land to give jobs to people nearby,” he said.
For local governments, law enforcement should take on a more empathetic approach for those in the informal sector so long as people observe the basic SOPs.
Sulaiman Mahbob.“On the institution side, government-linked companies (GLCs) that may have reserves, must deploy these reserves to support the demand side.”
Similarly, firms that are reaping profits from the pandemic must carry out corporate social responsibility efforts.
“All must work together. Now is not the time for us to downplay each other’s role, we must work together as a team.”
Meanwhile, on the Employees Provident Fund (EPF) Account-1 withdrawal schemes he said they may affect the long-term savings and financial position of the workers. “Unfortunately, our wage system is not very high.”
He suggested reducing the rates of EPF statutory contributions for the short-term. This may reduce cost to the workers and companies, on top of allowing people to have more disposable income.
“Later, when employment prospects improve, we can raise the rates again.”
Employers currently have to pay 12% to 13% of every worker’s salary to the EPF every month. - FMT

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