KUALA LUMPUR – The Employees Provident Fund (EPF) is assessing the best method for contributors to use their Account 2 as security for emergency loans.
“EPF is aware of the announcement made by Prime Minister Datuk Seri Anwar Ibrahim and is taking into account all relevant factors to ensure it is implemented smoothly.
“More information on this facility will be announced by EPF in the future,” it said in a statement today.
In his winding-up speech on Budget 2023 yesterday, Anwar told the Dewan Rakyat that EPF contributors could use their retirement savings as collateral for emergency loans, provided they have enough in their EPF accounts.
He said this approach would be taken in response to repeated calls by several MPs urging the government to allow more EPF withdrawals for those in need of cash aid.
“We gave leeway during the Covid-19 pandemic, but other countries that did it have also stopped this. Instead, I propose another method to assist those who desperately need cash.
“I will ensure that EPF will provide space to allow contributors with enough savings who are in dire straits to borrow from the bank, with their savings used as collateral. This is the best.” – The Vibes, March 10, 2023
