The government has been urged to revise the Employees Provident Fund (Amendment) Bill 2015 to reduce the differences in dividend payout between normal contributors and Syariah-compliant EPF holders.

This is to prevent all sort of problems (from cropping up), including racial and religious ones, said PKR lawmaker (Kelana Jaya).

He added that the government should re-table or postpone the bill after the 2016 budget is unveiled on Friday.

Some changes need to be done, he said at the Parliament lobby today.

The bill, which was tabled for first reading on Monday, had raised concern among opposition MPs who felt the government was trying to bulldoze it.

The bill will see a Syariah advisory committee established to ensure part of the investments comply with Syariah principles.

"The powers given to the Syariah advisory committee are too wide ... we must have specific guidelines,” said Wong.

'Ensure laws are sensitive'

"For instance, if EPF has an investment in a company that has been found to be corrupt, will Syariah EPF pull out the investment?" he asked.

There will be two types of dividend payout under the proposed bill - dividends from investments which comply with Syariah principles and the normal payout, said Wong ( photo ).

"We have to make sure the differential in dividend payout is no less than two percent.

"Otherwise, it could lead to all sort of problems. For instance, if EPF holders get a four percent dividend and Syariah EPF contributors receive eight percent, it will cause jealousy among the depositors," he said.

"It is the job of parliamentarians to ensure that laws are sensitive,” he said.

In the EPF amendment bill tabled, EPF also reaffirmed the withdrawal age of 55 for a member's savings.

However, if the member makes contributions after 55 years of age, then those savings can only be withdrawn upon the age of 60.