18th November 2008EPF Contribution reduce from 11% to 8%, is it good or bad thing?
Since this is my blog and this is my view, and my point of view only, i would say i totally agree with this but i'm sure, there are a lot of people would disagree with me as well.
Perhaps you may know that this EPF reduction is merely an option to you and knowing that you would have extra money in the pocket would bring some hope and definately joy to certain people if not all. Since this is an option, at least you know you have a choice to make whether to have extra money for you to pull through the hard time now or you can save in for the future when you retire later, if you are still alive that is.
You have to understand that government is merely open up another option to its people to think about and to move on with the current bad time. You can say you are worry that you might not have enough money when you retire later but think it this way, we survive today to have tomorrow, so why worry about tomorrow when you can't even survive today right? Some of you would debate with me on this matter but then again, i would not say you are wrong either. We have our own principle and my principle for this matter is quite clear, take out the money that i would save for the 3% difference.
One of the groups opposing to this matter, MTUC or The Malaysian Trade Union Congress even mentioned that:
"a 35-year-old person with a RM3,000 monthly salary would be reducing his EPF contribution by RM2,160 over the course of two years. Assuming that a 5% dividend is paid out annually with the compound element over a period of 20 years, he will be RM5,500 “poorer” when he retires. And this is not taking into consideration past (one-year period in 2001 and 2003) and future exercises of a similar nature.
" (Taken from The Star Newspaper dated November 16, 2008)
