KOTA BARU – Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed is confident that the government will find “the best way”, following a proposal to allow withdrawals from Account 1 of the Employees Provident Fund (EPF).
He said a careful study is needed as there are constraints with regard to Account 1, as it also involves retirees and other groups that are financially strained.
“We understand that about 70% of EPF contributors have savings of less than RM50,000. Hence, this matter is not easy to decide on,” he told reporters after the Kelantan Legislative Assembly sitting here today.
“The prime minister has given an early picture, so we just have to wait for the Budget 2021 announcement tomorrow. There will definitely be an announcement on the matter.”
He said EPF has 14.5 million contributors, but only eight million are active.
“EPF is retirement savings, and since our lifespan is getting longer, we need to ensure that we have sufficient money in old age.”
Yesterday, Prime Minister Tan Sri Muhyiddin Yassin said the government is studying the suggestion to allow certain contributors, such as laid-off workers, to withdraw funds from Account 1. – Bernama, November 5, 2020
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