'Hypocritical', S'wak DAP Youth hits back at SUPP over EPF reform criticism

Sarawak DAP Youth had criticised Sarawak United People’s Party (SUPP) statement on the government’s Employees’ Provident Fund (EPF) reforms, describing it as baseless accusations that are “profoundly hypocritical”.

Its representative, Wong King Yii, said SUPP had argued that the unity government’s latest reforms are interfering with the freedom of pensioners, depriving them access to their own savings.

“Such a claim is not only misleading - it is profoundly hypocritical. It was during the administration of former prime minister Muhyiddin Yassin that the government introduced various EPF withdrawal schemes allowing contributors to dip into their retirement savings prematurely.

“SUPP was part of the ruling coalition at that time. Yet, they remained silent. While these withdrawals may have been well-intentioned during a crisis, they severely compromised the long-term financial security of millions of Malaysians.

“Billions were drained from the retirement savings of hardworking rakyat, and SUPP stood by without objection,” he said.

Wong quoted findings from Khazanah Research Institute, which claimed that more than 50 percent of EPF members now have less than RM10,000 in their accounts, and that over 90 percent of young contributors are on track to retire without reaching the basic savings threshold of RM240,000.

These concerning statistics, he said, are a result of “financial sabotage” from the previous government’s policies, and SUPP should be blamed for its complicity.

‘Forward-thinking approach’

Wong also echoed Deputy Finance Minister Lim Hui Ying’s statement last week.

Lim had assured that the proposed mechanism for retired EPF members to make monthly withdrawals would not affect the existing members unless they opt in.

Wong argued that the government’s reform proposals reflected a sense of responsibility towards the rakyat’s long-term welfare. He described it as a “forward-thinking approach,” in comparison to the “short-sightedness of the previous administration”.

The proposal, still under review, aims to provide long-term retirement security by splitting future contributions into flexible and income savings.

Under the 13th Malaysia Plan (13MP), the government said it is exploring a new mechanism to ensure a continuous post-retirement income through a monthly pension payout, in contrast to the current lump sum payment upon retirement.

“This system not only safeguards the rights of current contributors, it also demonstrates the government’s firm commitment to ensuring that the younger generation does not retire into poverty.

“Before SUPP points fingers, they should reflect on the financial damage they helped create. Today, millions of Malaysians are forced to delay retirement and live in constant financial insecurity due to short-sighted, populist policies advanced by a government that SUPP supported,” Wong added.

Three accounts

At present, EPF contributions are divided between three accounts - Retirement Account (previously known as Account 1), Well-being Account (Account 2), and a third account introduced last year called Flexible Account.

Contributors can only withdraw their savings in the first account after they reach retirement age, while the Well-being Account allows withdrawals before retirement, but limited to a number of purposes such as to pay for housing, education and health.

Following public concerns, the EPF clarified that the proposal is still under in-depth study, and a decision will only be made after seeking comprehensive feedback.

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