KUALA LUMPUR – While Malaysians welcomed the RM100 cash handout announced by Prime Minister Datuk Seri Anwar Ibrahim, former Klang MP Charles Santiago believes that the funds could have been better spent on something far more impactful: topping up the depleted Employees Provident Fund (EPF) accounts of millions struggling to save for retirement.
In a statement today, Santiago questioned the long-term value of the one-off payout, arguing that the government missed a chance to rebuild the retirement safety net for 6.3 million EPF contributors who currently have less than RM10,000 in their accounts.
“That’s not a safety net — it’s a crisis waiting to happen,” Santiago said.
“Imagine if that entire budget had been used to top up EPF accounts. That would’ve been bold, targeted, and actually something to cheer about.”
He emphasised that the EPF, originally designed as a retirement fund, has over the years been repurposed to help Malaysians cope with low wages and rising costs, especially during the COVID-19 pandemic. However, continued withdrawals have left millions with dangerously low savings.
Santiago added that any serious reform must start with acknowledging why contributors were forced to dip into their retirement savings in the first place.
“The real issue is low wages. EPF was never meant to patch over daily struggles. If we want a system that actually works, we need to start by raising real wages and building long-term protection.”
He cited Singapore’s Central Provident Fund (CPF) as a model that balances mandatory savings with ongoing support from the state and employers.
“CPF includes regular government top-ups, especially for low-income workers and seniors. It’s a system that supports people through retirement — not one that leaves them scrambling to survive.”
Santiago called for comprehensive and fair reform that goes beyond piecemeal handouts and aligns public policy with the economic realities Malaysians face.
“Don’t just redesign the EPF. Rebuild the foundation. Everyone deserves the chance to retire with dignity,” he said. – August 5, 2025