KUALA LUMPUR, Sept 17 ― Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz sought to assure Malaysians that their pension savings are safe, dismissing rumours that the federal government is eyeing to tap the cash-rich Employees’ Provident Fund (EPF) to shore up its allegedly low finances.

She pointed out that Putrajaya is taking steps to address the economic challenges for the country and would also face a very stern board if it tried to touch workers’ savings.

“The EPF has a strong investment panel and a strong board. It is looking after all of our savings. I believe this for they have done well, generated good rate of returns and had been very careful in its investment activities.

“So, I don’t think the government is going to plunder the EPF because it is the people’s savings,” she was quoted saying in an exclusive interview with the New Straits Times published today.

Zeti also noted that the government has already taken two measures to improve its finances, with both showing positive results for Putrajaya.

One of it was to slash subsidies that has become a major burden for Putrajaya, resulting in the government benefiting significantly as this measure coincided with low global oil prices, Zeti said.

The other is the introduction of the Goods and Services Tax in April, which she said was important for it to broaden its tax base and revenue source in order to provide for education and health facilities and infrastructure development.

“But the government also has to adjust and they have made the necessary adjustments. As I have said, this is a period of adjustment for everyone.

“We can’t always have good times. Those who have built up buffers during the good times will survive better,” she said as she reiterated her call in the interview for all to readjust their spending and manage their finances better.

Malaysians are often wary and worried that the government may dip into funds from the EPF ― where their retirement savings are built up monthly ― to fuel Putrajaya’s spending.

Last year, the EPF declared its highest dividend rate since 1999, announcing total payout amounts of RM36.66 billion to its contributors at a dividend rate of 6.75 per cent.

It also recorded a RM39.08 billion gross investment income for the 2014 financial year as it outperformed its RM35 billion figure in the previous year by 11.66 per cent.