MTUC, labour unions ask govt to discontinue i-Citra withdrawals

KUALA LUMPUR, Dec 14  -- The Malaysian Trades Union Congress (MTUC) hopes the government will no longer allow withdrawals from the i-Citra scheme, instead continue to help the people by introducing additional incentives.

Acting president cum deputy president Mohd Effendy Abdul Ghani said the government should also continue to provide additional assistance to small traders, including grants, subsidised loans and credits as part of stimulus packages, either through banks or government agencies.

There are more than 40 different loan programmes covering various sectors, he said in a statement today.

Mohd Effendy said proposals to help the Employees Provident Fund (EPF) rebuild savings such as offering different dividend rates or focusing on high-value projects would not be enough as the impact was too small to change the dire situation faced by most members.

"This is because almost half of them have less than RM10,000 in their accounts," he said, adding that many members were asking for additional withdrawals in the face of outstanding debts or having to make up for their business losses despite the economic recovery.

He said members may have to work four to six more years to replenish their EPF withdrawals.

Meanwhile, the Union Network International-Malaysia Labour Centre (UNI-MLC) said that the EPF would violate the objective of its formation if it were to allow continued withdrawals of savings.

"Every statutory body related to the labour and employment system has a purpose, and it must be defended for the welfare and overall protection of workers today and in the future," its president, Datuk Mohamed Shafie BP Mammal said.

He said the government, especially the Ministry of Finance, should take an immediate stand on this matter for the sake of the future of the EPF contributors.

"As withdrawals from savings through i-Citra could pose threats of a decent living post-retirement, the UNI-MLC urges the EPF to immediately stop the I-Citra scheme," he said.

The National Union of Seafarers of Peninsular Malaysia (NUSPM) said it also against continued withdrawals from savings through i-Citra as it was the government's responsibility to help workers in need of financial support.

Executive Secretary Ikmal Azam Thanaraj Abdullah said for those who encountered problems like late repayment of debts, the banks were supposed to provide leniency, and members could complaint to Bank Negara.Malaysia if assistance was not rendered.

“More important, the Credit Counseling and Debt Management Agency (AKPK) can help restructure any consumer loan, and can help members manage their debt burden,” he said.

Currently, 48 per cent of EPF contributors below 55 have critically low savings, and this is augmented by recent statistics that life expectancy of a Malaysian male is at 72 years while female at 77.

The total amount of EPF special withdrawals has now increased to RM101 billion involving 7.35 million members.

-- BERNAMA