Malaysia

More members might retire below poverty line if additional EPF withdrawals permitted: Tengku Zafrul

Nearly half have less than RM10,000 in their accounts, says finance minister

Updated 4 years ago · Published on 15 Jan 2022 5:20PM

More members might retire below poverty line if additional EPF withdrawals permitted: Tengku Zafrul
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz says every decision made by the government must take into account the interests of the people in the short-and long-term periods. – The Vibes file pic, January 15, 2022

KOTA BARU – More Employees Provident Fund (EPF) members will retire below the Income Poverty Line (PGK) level if the government allows additional withdrawals of their savings, said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.

He said this was due to the continuous decline in EPF members’ retirement savings, noting that currently almost half of the members have less than RM10,000 in their accounts.

“Of this total, 55% are Bumiputera. More worryingly, over 79% of members (who have savings) of less than RM1,000 are also Bumiputera.

“So if additional withdrawals are allowed, this will result in more members to retire below the PGK, causing the Malaysian Family to bear a huge burden in the future, especially if a recession occurs,” he told reporters after visiting the Kelantan Urban Transformation Centre, here, today.

He said this when asked to comment on a study by Umno Youth which found that more than 97% of members want the government to approve the one-off withdrawal of EPF i-Citra savings of RM10,000.

Commenting further, Tengku Zafrul said every decision made by the government must take into account the interests of the people in the short-and long-term periods.

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, the government has allocated RM8.2 billion to be distributed to 9.6 million recipients. This is among the various forms of assistance provided to the people,” he said. – Bernama, January 15, 2022

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