Prime Minister Najib Abdul Razak’s announcement that contribution by employees to the Employees Provident Fund (EPF) will be reduced by three percent – from 11 to eight percent of their salary - is a cause for celebration for some.

But for many workers, having more savings for the future is better than having more disposable income in the short term.

Thirty-five-year-old Nor Shazreen Sapuan does not support the cuts, preferring to have more savings to accumulate dividends.

“Yes, we may have more income (when EPF deductions are cut) but with more money, we will be spending more...