MTUC: Unjustifiable to invest EPF funds to strengthen US economy

PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has objected to the plan to invest RM17bil from the Employees Provident Fund (EPF) in the United States.

Its secretary-general J. Solomon said instead, the funds should be used to develop the domestic economy.

“EPF belongs to the workers, and its funds should be invested to improve workers’ welfare, not to invest in US equity markets to assist US infrastructure redevelopment,” he said in a statement on Friday.

Solomon expressed MTUC’s dismay with the Malaysian Government for committing to invest RM17bil from EPF to strengthen the US economy.

“Does the US, a super power and the world’s largest economy, really need the retirement funds of Malaysians to strengthen its economy?”

“There is a dire need to strengthen the economy of our own country to at least materialise Vision 2020,” he said.

He added that the Government should not ignore its priority towards its own people, especially when it comes to workers’ welfare and their monies.

Solomon said MTUC had personally written to Prime Minister Datuk Seri Najib Tun Razak in February requesting that EPF pay workers the shortfall of the 0.7% dividend pay-out for the year 2016.

“This request was made in February, taking into account the highest income generated by the fund since its existence, and to ensure the accumulation of reasonable funds in the individual worker’s accounts, which is the only social protection a worker has for his retirement,” he said.

He said unfortunately, MTUC has not received a response, but learnt from the press and social media about the plan to invest EFP monies to strengthen the US economy.

He said it is the moral obligation of the Government to explain to MTUC of the deal with the US which should have been done before giving its commitment to the US President.

During his bilateral meeting with President Donald Trump on Tuesday, Najib revealed that EPF, which has US$7bil (RM29.42bil) worth of investments in the US currently, intended to invest an additional US$3bil (RM12.61bil) to US$4bil (RM16.81bil) to support infrastructure redevelopment there.

http://www.thestar.com.my/…/mtuc-unjustifiable-to-invest-e…/

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