Malaysia

EPF widens scope of Account 1 withdrawal facility, 2 million to benefit

Estimated advance amount of RM14 billion to be made available

Updated 5 years ago · Published on 16 Nov 2020 9:19PM

EPF widens scope of Account 1 withdrawal facility, 2 million to benefit
Active members who have lost their jobs, were given no-pay leave, or have no other source of income are now also eligible for EPF’s i-Sinar. – Bernama pic, November 16, 2020

KUALA LUMPUR – The Employees Provident Fund (EPF) expects the i-Sinar facility to benefit two million members, with an estimated advance amount of RM14 billion to be made available.

Chief executive Tunku Alizakri Raja Muhammad Alias said EPF has widened the scope of i-Sinar to cover active members who have lost their jobs, were given no-pay leave, or have no other source of income.

Eligible members will have access to 10% of their savings in Account 1, subject to always having a minimum balance of RM100.

“For those who have RM90,000 and below in Account 1, they have access to any amount up to RM9,000,” Tunku Alizakri told a media briefing today.

“For those who have above RM90,000 in Account 1, they have access to up to 10% of their Account 1 savings. However, the maximum total amount allowed to be advanced is RM60,000.”

He said all advances will be staggered over a period of six months, with a first-month advance of up to RM4,000 for contributors with Account 1 savings of RM90,000 and below, and up to RM10,000 for those with more than RM90,000.

Members who choose to apply for the i-Sinar facility will be required to replace the full amount advanced.

“All future contributions will be 100% credited to Account 1 until such time that the amount advanced is replenished. Thereafter, contributions will revert to 70% to Account 1 and 30% to Account 2.”

Eligible members can start applying from next month, and the funds will be credited into their bank accounts by the end of a month following their application.

“First crediting will take place in January 2021, and it will be made over a period of six months from the first date of crediting,” said Tunku Alizakri.

He said the facility is aimed at providing affected members with supplementary funds to survive the current economic crisis while ensuring future retirement savings. – Bernama, November 16, 2020

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