Budgeting for now and the future
IT'S D-Day today — the day we find out what next year's budget holds for us.
The nation awaits with bated breath for this afternoon, when the 2021 Budget is tabled in the Dewan Rakyat.
In a year where the country has been ravaged by a pandemic and the national economy and personal pockets have suffered tremendously for it, next year's budget takes on even greater importance.
The prime minister has promised an expansionary budget aimed at helping the people and reviving the economy. Not much has been said about what measures will be included in the budget, although, as usual, many have been asked by the media what would be on their wish list, while others have volunteered suggestions.
One suggestion that may be included in the budget is that those affected by the pandemic and the various forms of the Movement Control Order be allowed to withdraw from their Employees Provident Fund (EPF) Account 1.
Tan Sri Muhyiddin Yassin has said that the government is mulling over the proposal. Many have come out in support of the suggestion. The argument is that this will help cash-strapped Malaysians and, besides, it is their money anyway. This may be so. These are desperate times and being able to withdraw from the EPF Account 1 could possibly help.
But there are pitfalls to everything and this Leader feels that any allowance of withdrawals needs to be carefully thought out so that every detail is covered to ensure that EPF contributors are still protected.
There have been many arguments for and against any move to allow withdrawals from Account 1. But, is it really needed?
It would be wise to ensure, should withdrawals from Account 1 be allowed, that strict conditions be met first.
And these restrictions need to protect the people. The Malaysian Youth Council suggests that this be the last resort. Basically, it's when a person does not qualify for government aid, when Account 2 is completely dry and when there is absolutely no income.
Institute for Democracy and Economic Affairs senior economist Adli Amirullah, meanwhile, says strict measures must be set, including that a maximum withdrawal amount be stated and that the number of withdrawals be capped.
The government should also educate the public on the implications of using up their retirement savings.
What we need to remember is that we are still in the midst of what isavirulent third wave of Covid-19 infections.
We are nowhere near being out of the woods yet. Health authorities are saying we could possibly flatten the curve in three weeks, but there is still a long way to go as far as economic recovery is concerned.
If we withdraw from Account 1 now, what happens next year? Remember, Covid-19 vaccines are still being tested and we may not have this pandemic licked for a long time.
Whatever the outcome, it must be in the interests of the people, for now and their future.
It may be wise for some to change their lifestyles while we wait for better days. For, with prudence and sensibility, we will be able to survive such trying times. - NST
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