MP finds conditional support for Budget based on EPF withdrawals, loan moratorium 'awkward'

KUALA LUMPUR: An MP today said he found the conditional support for Budget 2021 by certain quarters based on the approval for withdrawals from Account 1 of the Employees Provident Fund (EPF) and the extension of the loan moratorium, rather 'awkward'.

Ahmad Fadhli Shaari (PAS-Pasir Mas) said this was because the two items were matters of policy and could be announced by the government at any time.

"Maybe my views are a little different from other more senior MPs, but to pledge support for this Budget based on the condition that the government announces immediate policies on issues with regard to the EPF withdrawals and loan moratorium, I think this is rather awkward

"I urge the government to reconsider this because I am worried that this situation will be akin to that of the legend between 'Puteri Gunung Ledang and the Sultan of Melaka' when the Sultan of Melaka wished to propose to her, by placing seven pre-conditions, where the conditions were not for the purpose of the proposal to be accepted, but rather have it rejected," he said during his debate on the Supply Bill 2021 at the Dewan Rakyat sitting today.

However, Ahmad Fadhli said the government still had room to consider the proposals (over the EPF withdrawals and loan moratorium issue) submitted by fellow MPs, and that the policies should be announced immediately.

"The EPF issue where an affected person can apply for RM500 a month needs justification because we need to consider the survival for not only today and tomorrow, but also the future of the people in an uncertain economic situation.

"The Minister (of Finance) previously stated that 32 per cent of the total EPF contributors have a balance of RM1,000 in Account 1 while 10 per cent of them have RM5,000...here, the government still has room to consider the proposal submitted by MPs based on the principle that 'this is not the time for us to spend all our savings'," he said.

Meanwhile, Ahmad Fadhli also urged for the loan moratorium to be extended, but suggested that it be implemented on a more targeted basis.

"If the moratorium is given automatically, we will not see the effectiveness of this assistance to the target group, and it could lead to leakages and a waste of available resources...although we believe many need the moratorium, I am sure that there are others who do not need it because based on the data made available to the government, there are also those who have rejected the moratorium and still wish to continue making payments to the bank," he said.

Meanwhile, Datuk Ahmad Jazlan Yaakub (BN-Machang) also supported the proposal to enable EPF contributors to withdraw up to RM6,000 or RM500 per month for up to a year but suggested that the amount be increased to RM10,000.

"We in this august house are living a different life from them, but be aware, that the people are suffering, do not talk about tens of thousands of ringgit, some of them might even be finding it difficult to earn tens of ringgit right now," he said.

-- BERNAMA