Finance Minister: EPF Should Not Be Seen As Solution To Challenges
Author Avatar

Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz has reiterated that the Employees Provident Fund (EPF) should not be seen as a solution to challenges, as it will adversely affect the retirement savings of Malaysians.

Speaking in a video to address comments and calls to enable another round of EPF withdrawals via i-Citra due to the floods that hit several states in Malaysia recently, Tengku Zafrul gave various points and statistics to highlight the detrimental effects of another round of withdrawals while at the same time reminding the public that the Government is already providing various financial aids to flood victims of up to RM61,000 per household.

Tengku Zafrul noted that EPF withdrawals were only enabled as a short-term measure to provide immediate financial assistance due to Covid-19, an unprecedented event that affected the whole world, but the EPF should not be seen as a solution to every challenge the country faces. In addition, he also noted that the government did not enable EPF withdrawals back in 2014 when the country faced a similarly devastating flood.

“The purpose of the EPF is none other than the preparation for old age, when the ability to continue working diminishes. It is important to know that the rakyat has retirement savings because not long from now, in the year 2030, Malaysia is expected to hit the status of an ageing nation. In just eight years from now, the amount of retirees and elderly will comprise 15% or more than 5.3 million of the population,” he said.

Since the three EPF withdrawal facilities were launched, EPF members were allowed to withdraw up to RM71,000, and in total, EPF members have withdrawn over RM101 billion from their retirement savings. Tengku Zafrul stressed that more withdrawals would further affect the issue of the lack of retirement savings which is already at worrying levels.

Further, Tengku Zafrul also noted that many EPF members would not be able to make any further withdrawals anyway as they do not have enough minimum savings to withdraw. Almost 50% or around 6 million members have EPF savings below RM10,000, which means they do not qualify for i-Citra withdrawals.

According to Tengku Zafrul, the Government is providing various financial aids to assist flood victims, including a RM1,000 cash aid under Bantuan Wang Ihsan (BWI), a RM500 voucher to purchase electrical appliances, car and motorcycle repair aids, a RM10,000 loan at 0% rates with an immediate 6-month moratorium, and several others.

(Source: The Edge)

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
Top Personal Finance News Articles
Post Image
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
The RinggitPlus Team
- 25th May 2022
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Touch n Go RFID: What Malaysian Road Users Need To Know
Jacie Tan
- 10th August 2018
Everyone’s talking about Touch ’n Go RFID being used at Malaysian highway tolls soon – here’s what you need to know about it.
Post Image
Astro 4K Ultra HD Broadcast To Be Available For Subscription By The End of This Year
Brian Chung
- 14th August 2018
By the end of 2018, Astro customers will be able to watch football matches in Ultra HD. Read on to know more about the 4k Ultra HD service.
Post Image
Shopee Introduces SPayLater, Lets Users Buy Items Now And Pay Later
Alex Cheong Pui Yin
- 18th January 2021
Shopee has introduced a new payment feature that lets its Malaysian users purchase items and pay for them […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image

Setel Rolls Out EV Charging Feature

Jacie Tan -
2nd February 2021