Prime Minister Datuk Seri Anwar Ibrahim reaffirmed today that the federal government has no plans to introduce further targeted withdrawals for Employees’ Provident Fund (EPF) contributors. Speaking in the Dewan Rakyat, Anwar emphasised that the core principle of EPF is retirement savings, and allowing additional withdrawals would pose long-term financial risks for contributors.

He cautioned that giving excessive flexibility in withdrawals would have serious consequences, saying that by granting such wide leeway, contributors would inevitably face hardship when they retire or grow older. He stressed that the government had to find a balance between addressing immediate financial struggles and ensuring that people were not left without financial security in their later years.

Anwar was responding to Nurul Amin Hamid (PN-Padang Terap), who had asked whether the government would consider introducing targeted withdrawals for those struggling with unemployment, debt, and the rising cost of living. Citing EPF data, he pointed out that ethnic Bumiputera contributors have some of the lowest retirement saving levels, with a median EPF savings of just RM8,920 as of December last year. Acknowledging these concerns, he added that special exemptions have been provided for those in critical situations.

While reiterating that broad-based withdrawals would not be reintroduced, he assured that EPF would assess any appeals on a case-by-case basis, taking into account the urgency of an individual’s financial circumstances.

On the issue of mandatory Shariah savings contributions for Muslims, Anwar stated that the government has no intention of enforcing such a requirement. He highlighted that the recent dividend rate of 6.30 per cent for both conventional and Shariah savings, the first time they have been equal since 2017, was a significant milestone. 

“This [dividend] record is important because this will further encourage Muslims to contribute. With further encouragement and explanation, it is hopeful the number of contributors will increase,” he said. 

Addressing concerns about the mandatory EPF contributions for foreign workers, Anwar clarified that this new policy would not divert EPF’s focus from citizens’ retirement savings. He stressed that protecting local workers’ interests remains a priority for the government. The two per cent mandatory EPF contribution for foreign workers was announced during the tabling of Budget 2025 last October, and he stated that the move aligns with international labour standards, reinforcing the government’s commitment to fair treatment for all workers, regardless of nationality.

Finance Minister II Datuk Seri Amir Hamzah Azizan had explained that this policy aims to improve wage equity and ensure that local workers are not disadvantaged. He noted that the government remains committed to narrowing the wage gap between local and foreign workers, while maintaining the integrity of EPF’s retirement savings framework.

(Source: MalayMail)

• TAGS:
• Datuk Seri Anwar Ibrahim
• Employees’ Provident Fund
• Employees’ Provident Fund (EPF)
• EPF
• Targeted Withdrawals