50 pct of employees opt for 8 pct EPF contribution

Fifty per cent of the Employees' Provident Fund's (EPF) members have chosen the option to decrease their contribution rate from 11 per cent to eight per cent, Second Finance Minister Datuk Johari Abdul Ghani said.

He said the reduction translated into about RM4 billion in the hands of employees circulating in the market to stimulate the economy.

"The remaining 50 per cent of EPF members have opted to retain the 11 per cent subscription. It is their choice.

"The option for the (three per cent) cut was aimed at increasing public spending," the told reporters following his working visit to the EPF headquarters here today.

EPF members were given the choice to retain the 11 per cent subscription by completing a "Notice to Contribute More Than Statutory Rate" which could be printed from the EPF website at www.kwsp.gov.my since Feb 2.

The completed notice needs to be submitted to employers before being sent to the nearest EPF branch.

On the 2017 Budget preparation, Johari said the Ministry of Finance is currently engaging 20 focus groups to get feedback from stakeholders, including the public, non-governmental organisations and industry players.

For example, two deputy finance ministers collected feedback on the cost of living and the capital market last week, he said, adding that the stakeholders provided feedback on how the government could assist them in facing the economic challenges.