EPF says in-depth study on salaries needed

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BANGI (March 4): There should be an in-depth study on the salaries and wages of employees by taking into account the cost of living, said Employees Provident Fund (EPF) chief executive officer Tunku Alizakri Alias today. 

He pointed out that emphasis should not be on increasing the percentage of contribution to the provident fund, but rather, the wage levels of employees. 

Tunku Alizakri noted that the contribution of 12 per cent and 11 per cent by employers and employees respectively was already the fifth highest in the world and said there would be implications if increased. 

"The increase will impact employees in terms of their take home pay and for employers, the cost of doing business, and these are quite sensitive issues.

"I would not recommend increasing the contributions hastily and there should be more studies done before such an action is taken," he told reporters after the launch of the "Belanjawanku" expenditure guide for Malaysian individuals and families, here, today.

Tunku Alizakri said the underlying motivation for developing Belanjawanku was the problem of low financial literacy, rising cost of living and over-indebtedness among Malaysians. 

"This guide will also be adopted by our Retirement Advisory Services officers in providing our members with financial guidance and advice, in complementing what is essentially a flagship EPF service. 

"We expect Belanjawanku to form the bedrock of society's strong financial well-being, leading to a better quality of life in the long-term," he added. 

The Belanjawanku project was commissioned by the EPF as part of its financial literacy programme  and the detailed research was done by the team at the Social Wellbeing Research Centre of Universiti Malaya. 

When asked about the ongoing issues between Malaysia Airports Holdings Bhd and AirAsia, Tunku Alizakri said the EPF was pleased that both parties had taken its comments positively. 

"AirAsia has already met up with us. MAHB will be meeting with us very soon," he added.