Datuk Richard Wee
KUCHING (May 2): Sarawak Federation of Chinese Associations (SFCA) president Datuk Richard Wee believes that now may not be the right time to increase the employers’ contribution to the Employees Provident Fund (EPF).
He said in view of the financial challenges in the current economic environment, the proposal, if approved by the federal Cabinet, would definitely increase the cost and burden of employers and companies.
“In the overall scheme of things, it would be beneficial to the employees but the timing of implementation is important and critical,” he told The Borneo Post today.
Wee was asked to comment on Prime Minister Datuk Seri Anwar Ibrahim’s statement yesterday that the Cabinet will discuss a proposal to increase employers’ contribution to EPF.
Anwar said this while commenting on the demands from various unions for such an increase to boost employees’ retirement funds.
Wee acknowledged that such proposal, in principle, is similar to the Singapore model whereby the contribution of their Central Provident Fund (CPF) is higher than Malaysia.
However, he said if such proposal is to be considered, it must be equitable increase both from employers and employees.
“It would not be fair to have the additional burden be lopsided,” he added.
Sarawak Chamber of Bumiputera Entrepreneurs (DUBS) president Datu Abang Helmi Ikhwan also disagreed with the proposal, saying it would burden employers, especially small and medium enterprises (SMEs).
He felt that the current rate of 13 per cent that the employers are contributing is already high.
“DUBS does not agree with the proposal because the present rate is already high. Any increase in employers’ contribution to EPF will burden traders,” he said.