1.3 Million Out of The 2.3 Million Workforce in Sabah Not Registered With EPF.

The disclosure made by the Regional Director of Employees Provident Fund (EPF), Mohd Fadil Sarehan on 17 July 2024 that 60% or 1.3 million out of the 2.3 million workforce in Sabah have not registered as EPF account holders are both shocking and disturbing.

Fadil Sarehan also confirmed that the total number of EPF contributing members in Sabah as of June 2024 were 958,197 people.

Questions now arise to the intrinsic details of these 1.3 million people – are most of them seasonal or contractual foreign workers working in the plantation and construction sectors, gig workers, part time or daily paid workers or self-employed? The lack of details are now put to question.

On 21 August 2023, the then Federal Human Resource Minister, V Sivakumar had said that workers in Sabah who were not covered under the Labour Ordinance are estimated to exceed 800,000 people and they are made of holders of IMM13 card, census certificate and Burung-Burung card as well as illegal Immigrants.

Interestingly, the then Minister had also said that 169,800 people in Sabah are unemployed.

So are the 800,000 and 169,800 people respectively mentioned by Sivakumar make up the 1.3 million people mentioned by Mohd. Fadil? If yes, then the disturbing aspect of this is, if the Sabah Government helmed by GRS are reckless in their rationalisation exercise or issuance of work permit to foreigners and if upon employment these foreigners opt to make EPF contribution, then in the future, they can easily outnumber the local Sabahans on the numbers of EPF contributing account holders.

Foreigners in Sabah are well known to practice thrifty lifestyles and those rationalized, employed and who opted to contribute (to the EPF) might even have more money than Sabahans upon maturity of their account. This in turn will allow these foreigners to provide education for their children or open up their own businesses in the State.

Lest we forget, EPF is governed by the Employees Provident Fund Act 1991 and in terms of policy by the Federal Government, EPF contribution by foreign workers are not necessary but they are encouraged to do so. Thus, there is nothing the State Government can really do if these foreign workers decide to make EPF contribution.

But even if we are to deduct 969,800 people (deriving from the figures provided by Sivakumar) from the said 1.3 million, we still have a remaining balance of roughly 330,000 people. Now the question begets on who are these said 330,000 people?

Both the Chief Minister, Hajiji Mohd Noor and Minister of Economy, Rafizi Ramli have also stated that the numbers of hardcore poor in Sabah have been reduced to below 10,000 people and I am now wondering if there are any correlation between their confirmation, the 169,000 unemployed people in Sabah and the remaining balance of 330,000 people having no EPF account.

I call upon any of the GRS/PH led State Cabinet to provide a detailed explanation on this matter and in the meantime, I also propose the establishment of a special Lab by UMS and IDS to make an in-depth study on the 1.3 million people in Sabah having no EPF account and how to identify any questions arising from the revelation as aforesaid.

Darell Leiking
State Assemblyman for Moyog
Deputy President, Parti Warisan
18 July 2024