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PRESS STATEMENT
(20TH OCTOBER 2010)
EPF DIVIDEND TO BE REDUCED
“EPF dividends would be gradually scaled down to encourage contributors to bring their money to the PPF”, said Ministry of Finance Economics and International Division under-secretary Datuk Dr Mohd Irwan Serigar Abdullah at a post-Budget dialogue organized by the Malaysian Economic Association
MTUC accepts that the dividend rate is dependant on the return on EPF’s numerous investments. The rationale for the Finance Ministry to deliberately reduce the dividend is ridiculous and unacceptable. Why is the government deliberately undermining EPF’s efforts to prudently and efficiently manage their funds, in the interest of their 10 million contributor?
MTUC and the 10 million employees who are dependant on EPF’s annual dividend to enhance their retirement savings are fully aware that the dividend rate can fluctuate from year to year.
In the past two years a number of insurance companies have been persistently lobbying the EPF and Bank Negara to siphon out employees’ savings with the EPF. MTUC’s vehement objections against this move was endorsed by the EPF Board.
The latest announcement by the Finance Ministry confirms that the insurance lobbyists have succeeded.
In view of this new development MTUC will actively launch an aggressive campaign to encourage the EPF contributors not to participate in the proposed Private Pension Fund.
Employees in the country should pay special attention to the Finance Ministry’s statement that the investments are not guaranteed; the dividend depends on the market. MTUC is seeking an urgent meeting with the Finance Minister to discuss the Ministry’s, plan to scuttle EPF’s effors.
G. RAJASEKARAN
Secretary General
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com