Alex Cheong Pui Yin
Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.
PM: EPF Members Lack Sufficient Savings For Another Round Of Special Withdrawals
Alex Cheong Pui Yin
17th January 2023 - 2 min read
Prime Minister Datuk Seri Anwar Ibrahim has commented that the government will need to deliberate on the immediate predicament of Employees Provident Fund (EPF) contributors, and their future survival before deciding if another round of special withdrawals should be allowed. This is as many contributors already have limited EPF savings as of now for their retirement.
“Too little… I’ve checked the amount of savings and for a majority of contributors, it is too small, and I am very concerned about their future,” said Datuk Seri Anwar, who is also the Finance Minister. He added that allowing another round of withdrawals will jeopardise the future of these contributors.
As such, Datuk Seri Anwar said that it would be better for the government to keep looking for other alternatives to assist these individuals in need instead. However, he did not share examples of such options as of yet.
Datuk Seri Anwar’s comment was made in response to recent calls by several groups that urged the government to consider allowing another round of one-off EPF withdrawals. These included Pertubuhan Aktivis Rakyat Malaysia (ProRakyat), which submitted a memorandum to the government to approve another round of EPF special withdrawals of up to RM30,000.
Prior to this, the government had already rolled out a total of four EPF special withdrawal facilities to assist individuals who struggled financially during the Covid-19 pandemic, namely the i-Lestari, i-Sinar, i-Citra, and a final RM10,000 withdrawal. However, this caused the EPF savings of many contributors to dip to worrying levels.
Specifically, it was revealed that as of June 2022, 52% of the total 12.78 million EPF members aged under 55 had savings of less than RM10,000. Meanwhile, the cumulative impact of these programmes on members’ savings is estimated at RM155 billion.
(Source: The Edge Markets, New Straits Times)
Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.
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Alex Cheong Pui Yin
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Comments (1)
Yes, it will be burdensome for EPF to liquidised 100s of RM billions for general withdrawal under ProRakyat. However, Govt may consider seriously to help the smaller grouping of targeted (bersasar) who are in dire (teruk) situation under PGIR. May DSAI, at least, under his executive premiership’s first kwsp withdrawal, give a priority helping hand to this smaller group of truly needy citizens.
I am James.
#kwspbersasar