Good news for the shopping complexes, bad news for EPF contributors ( me included). If I choose to reduce my contribution, I am using my future money. For a young contributor, his/her retirement money would be reduced.
Using future money is not good. Take the American as an example. The country and citizens are using future money... on borrowing money. The lived by selling bonds, on properties mortgages, sub-prime mortgages, derivatives, credit cards, personal loan.....and GREED. Today, the country and people are in deep s@%t.Malaysia is very much better off than them because we have savings, we do not live on loans and mortgages. Our banks are strong because they have reserve, we keep our monies in the banks! Internally, we are safe. However, due to globalisation, we are affected too. But we are in better footing due to our sound banking system and strict governmental monitoring.
The American is a basket case for us to learn from. So don't use future money. Don't borrow unnecessarily. Credit cards are traps. Easy personal loans are hanging noose, keep away. Live within our means and live simple ! Don't be greedy!
However, I see a dangerous trend in our country. Nowadays, our banks and financial institutions are targeting young people as their focus sector. Credit cards are easily obtainable. They offered Easy loans, cash on call (even loan shark feel being threatened) .... Many young people are heavily indebted. They are paying high interest to the bank for the financial facilities, constantly haunted by the re-payment, thus affecting their job performance, their future is in jeopardy.
Many young people chasing lifestyle with indiscipline spending habit and expensive taste have fallen into this black hole.
Our country's economic outlook next year is bleak. Keep you money. Save more for rainy days ahead.
It is wise to opt for No to 3% EPF reduction.