EPF helping the poor?

Two letters from readers regarding the loan to the Federal Territory Foundation which will help provide housing for the poor appeared in the Sun 15 February 2012 and does highlight a major issue with the whole scheme.

One of the letters reminded us that EPF's mission statement is to provide retirement savings for Malaysians and not addressing social problems like housing for the poor which should be the government's job. The other letter reiterated that since money from the EPF is hard earned for retirement and not part of the income tax revenue, it should never be used or directed to be used by the government. Alas, in a round about way, the government is using the EPF's money through an indirect order. The stated reason is to help the poor, so I guess it would make the EPF members feel a bit better contributing to a good cause.

No one begrudges the scheme for the poor but taking the money set aside for the members retirement has touched a sore point. The details of the scheme does not seem to have additonal benefit for those who need it since at the end of the day, they still have to pay a high interest rate for the loan. As one of the letters pointed out, would the authority chase out those who are unable to pay? That definitely defeats the purpose of the whole scheme.

Further details should definitely be forthcoming and the short period of time between the proposal and the annoucement does point to a rushed job. Or maybe it has been hatched for quite some time but the nitty gritty has not been finalised. Initial statements that need to be backed up later is not the correct way to assuage the public. It is their hard earned money.

Image from eastasiaforum