Gerakan has hailed the high dividend declared by the Employees Provident Fund (EPF) for 2010, describing it as “good news and timely bonus” to help working people who are entitled to withdrawals tide over their financial constraints.

Gerakan vice-president Datuk Mah Siew Keong said the dividend at 5.8%, the highest ever total dividend payout of RM21.61 billion to members, would also help generate economic growth for the country.

“At this particular of time when prices of food globally have increased tremendously, the EPF payout will become very handy especially for those with average monthly income,” said Mah in a statement

Mah, who is also the party’s head of national economic bureau, said the self-employed should be encouraged to register with the EPF, especially farmers, fishermen, smallholders, petty traders, hawkers, homemakers and pensioners.

He said Malaysians working in foreign countries should also be persuaded to register and contribute to EPF so that upon their return to the country, they would have good savings.

Mah said Malaysians who are not officially registered as employees should also be persuaded to contribute to the nation’s largest provident fund under the self-employed category, so as to build up a financial nest for their retirement.

Mah said the self-employed category was created to encourage individuals who fall outside the official definition of ‘employee’ to contribute to the EPF. Even homemakers can benefit from this by having their spouses contribute on their behalf.

Mah said many existing members’ accounts have become dormant after the members became self-employed, or stopped working to bring up a family.

“The EPF should encourage these members to continue contributing to the EPF voluntarily, to ensure they have an additional source of retirement savings,” he said. Members registered under the self-employed category may contribute a minimum of RM50 up to a maximum of RM5,000 monthly to their EPF accounts.

Mah said, the Employees Provident Fund (EPF) is a national savings scheme, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance.

He hopes the EPF continues to play a catalytic role in the nation’s socio-economic growth, consistent with its position as a leading savings institution in the country.