Malaysia

Allowing EPF savings withdrawals a bad idea, says NGO

Money should be reserved for retirement alone, says Penang Hindu Association

Updated 5 years ago · Published on 06 Nov 2020 10:19PM

Allowing EPF savings withdrawals a bad idea, says NGO
Penang Hindu Association president P. Murugiah says the government should only allow contributors to make withdrawals as a loan and let them repay the amount with interest, as the money ‘only goes back into their savings’. – SAIRIEN NAFIS/The Vibes pic, November 5, 2020

by Arulldas Sinnappan

GEORGE TOWN – Employees Provident Fund contributors should not be able to withdraw their savings under the i-Lestari programme in the Budget 2021, said the Penang Hindu Association today.

Its president, P. Murugiah, said the money in EPF should be reserved for employees’ retirement.

"Allowing them to make withdrawals now is not a wise decision. The government could have looked for other ways to resolve the financial problems of contributors hit by the Covid-19 pandemic.

“I suggest that the government allow contributors to make withdrawals as a loan and let them repay the amount with interest, as the money only goes back into their savings,” he said.

Meanwhile, Consumers Association of Penang president Mohideen Abdul Kadeer said the NGO was supportive of the plan to impose a 10% excise duty tax for e-cigarette, vapes, and tobacco import licences. 

"This is what we have been waiting for the past five years. Many Malaysians spend lots of money for cigarettes, vapes, and e-cigarettes," said Mohideen.

Sahabat Alam Malaysia president Meenakshi Raman said the budget was a response to the current challenges the country faces in a slowing economy and the Covid - 19 pandemic.

She said that the budget gives recognition to the frontliners.

Meenakshi also said that the budget’s allocation of RM20 million to meet sustainable development goals was good in the government’s ongoing efforts to protect the environment – The Vibes, November 6, 2020.

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