PETALING JAYA: Economists are divided over an online campaign initiated to pressure the government to give approval to contributors to dip into their Employees Provident Fund (EPF) savings to help them tide over rising cost of living, The Malaysian Insight reports.
Since its launch two weeks ago, the campaign has to date, collected more than 170,000 signatures.
The campaign’s financial consultant Wong Chai Soon said if people can’t survive today, “then there’s no point talking about retirement”.
“If we talk about life’s security after retirement, we really shouldn’t open up the EPF for withdrawals. But if they can’t survive now, then there’s no tomorrow for them,“ he told The Malaysian Insight.
Wong said the appeal for the withdrawal to cope with inflationary pressures and rising food prices this time is “slightly more sensible” than those in the past.
He was referring to the i-Lestari and i-Sinar schemes that the government introduced in last year.
However, Universiti Tunku Abdul Rahman economist Wong Chin Yoong opined that the government’s move to allow another round of EPF withdrawal would actually exacerbate inflation as people have more spending power.
He reportedly described it as “having no end to opening a gaping hole”.
He said to tackle the rising prices and inflation that comes with it is to have a change in lifestyle and do a little belt-tightening.
