COVID-19: Commerce chambers call for 11% EPF contribution withdrawal to ease hardship as Malaysia enforces MCO

KUALA LUMPUR (March 20): The Malaysia-China Chamber of Commerce (MCCC) and Malaysian Islamic Chamber of Commerce (MICC) have called for strict enforcement to make the country’s movement control order (MCO) work with the prescribed 14 days to curb the spread of the COVID-19 outbreak.

The MCCC and MICC have also recommended safety nets including the permission for Employees Provident Fund (EPF) members to withdraw their 11% contribution to ease financial hardship due to the Covid-19 outbreak.

In a joint statement today, MCCC and MICC said Malaysians will swim or sink together and the cost to contain the outbreak must be shared as Malaysia undergoes the MCO between Wednesday (March 18) and March 31.

"The MCO will be extended and expanded if the ‘Tsunami-like’ third wave hits the country. MCCC and MICC warn that, if the outbreak soars like China and Italy, not only more people will get sick and die, a longer and wider lockdown will drive companies into bankruptcy, workers into unemployment, families into hunger and society into chaos.

"The outbreak is a more destructive crisis than the 1997-8 East Asian Financial Crisis. To overcome it, all parties must act responsibly and strategically, and a safety net must be provided for workers, families and businesses.

"If individuals sabotage the MCO to avoid inconveniences and unessential businesses seek exemption to avoid hardship, they will only drag the nation down into greater inconveniences and hardship, making the sacrifices by others in these two weeks in vain,” MCCC and MICC said.

MCCC and MICC call upon the authorities and the public to cooperate strategically on several measures including clear, consistent and compatible guidelines on all aspects of the MCO to ensure no confusion and chaos in its implementation besides strict enforcement with more road blocks and legal consequences on violators.

The list includes permission for EPF members to withdraw their 11% contribution for the past three to six months to ease financial hardship. "This will be especially vital for those whose main income source is commission,” MCCC and MICC said.

They also recommended the extension of loan repayment, waiver of default penalty and other financial assistance to businesses.

MCCC and MICC said this is to enable businesses to pay workers in the absence of revenue, prevent bankruptcy and layoffs, and support self-employed persons, commission earners and employees who have bills and loans to pay.

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