KOTA BHARU: When it comes to the Employees Provident Fund (EPF), the pertinent question that is hotly debated now is whether or not to allow additional withdrawals.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said additional withdrawals could result in the members being poor when they retire.
He explained that this was due to the continuous decline in the members’ retirement savings. Currently almost half of the members had less than RM10,000 in their accounts.
Of these, 55 per cent are bumiputera. And over 79 per cent of the members who have savings of less than RM1,000 are also bumiputera.
Zafrul argued that if additional withdrawals were allowed, it cause more members to retire below the poverty line.
He was commenting on a study by UMNO Youth which found that more than 97 per cent of members want the government to approve the one-off withdrawal of EPF i-Citra savings of RM10,000.
Every decision made by the government must take into account the interests of the people in the short-and long-term periods, he said.
He also assured that the government will continue to protect the welfare of the people, including the B40 and M40 groups.
“Under the 2022 Budget, more than RM31 billion is earmarked for subsidies, assistance and incentives to reduce the impact of the rising cost of living.
“To ensure the welfare of the people is taken care of, (under) Bantuan Keluarga Malaysia (BKM), the government has allocated RM8.2 billion to be distributed to 9.6 million recipients. This is among the various assistance provided to the people,” he said.
In Ipoh, Perak, UMNO youth chief Datuk Dr Asyraf Wajdi Dusuki said Employees Provident Fund (EPF) withdrawals at a time when the people are facing uncertainties caused by the COVID-19 pandemic must be considered a dire and emergency need.
He said the withdrawals will be extremely helpful for the people’s survival as there is no guarantee currently that their lives are going to change for the better.
“From the onset of COVID-19 up to the various movement control orders (MCO) enforced, the people have been affected to the point some have incurred burdensome debts.
“There is no guarantee that their future will be much better when even now they are already suffering… this is a pandemic and there is a need for EPF withdrawals because this is now an emergency,” he told reporters here on Sunday (Jan 16) at the Polling Agent/Counting Agent/Barung Agent (PACABA) course opening ceremony officiated by Menteri Besar Datuk Seri Saarani Mohamad.
Prime Minister Datuk Seri Ismail Sabri Yaakob was recently reported to have said that the government will not approve any further EPF i-Citra withdrawals to safeguard contributors’ savings for post-retirement life. – BERNAMA
