KUALA LUMPUR – Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz has allowed Employees Provident Fund (EPF) contributors to withdraw funds from their first account under the i-Sinar initiative, if Budget 2021 is approved.
In his winding-up debate, Tengku Zafrul told the House that this will impact up to eight million contributors, up from two million previously.
“It doesn’t matter if someone has lost their job or saw their income reduced, the member is qualified to withdraw from their first account. It doesn’t matter if they are active contributors or not, it doesn’t matter if they are in the formal sector or not.
“They are allowed to withdraw, and from RM9,000, they can withdraw up to RM10,000. They can do it online or be present at any EPF office to show their documented notices, such as unpaid leave, less overtime, or reduced income if they work on their own.”
Previously, Umno named two conditions in exchange for its MPs’ support for Budget 2021 – the automatic extension of the loan moratorium and allowing one-off EPF withdrawals of up to RM10,000 per contributor.
Tengku Zafrul told the House that EPF’s asset under management is around RM960 billion, and that he expects RM70 billion to be withdrawn.
Asked by Nurul Izzah Anwar (PH-Permatang Pauh) on how this will impact the fund’s performance and dividends, Tengku Zafrul said based on its analysis, the RM70 billion allocated for the initiative will not affect returns much.
“The total asset under management is at RM960 billion. We have made allocations and a sensitivity scenario analysis. We considered in detail the needs of Malaysians to withdraw from Account 1.
“Our analysis, which was completed this morning after a one-week discussion, will not impact dividends or returns for EPF, but we will be able to help a lot of people.” – The Vibes, November 26, 2020
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