KUALA LUMPUR – Contributors to the Employees’ Provident Fund (EPF) using their funds as collaterals to banks for financial purposes would not violate the EPF Act 1991, said Prime Minister Datuk Seri Anwar Ibrahim.
Bernama reported that Anwar, who is also finance minister, said the matter was discussed with EPF.
Answering a question about the procedure for having one’s EPF money used for banking purposes, which is an issue that has elicited much feedback, including negative ones, Anwar clarified that the current approach to this is to help certain cases only.
“Normally, it (using EPF money as collateral) is not allowed, but there are urgent cases,” he told reporters after officiating the 2023 World Water Day Celebration at the Indera Mulia Stadium in Ipoh today.
“For example, (if) contributors have savings but cannot afford to pay their children’s education fees abroad…we give consideration to such cases,” he added.
On Thursday, Anwar said the unity government would introduce a procedure to allow EPF contributors to use funds from their accounts as collateral to banks for financial purposes. He had announced this during the winding-up session on Budget 2023 in Parliament.
“I will ensure that EPF will provide space to allow contributors with enough savings who are in dire straits to borrow from banks, with their savings used as collateral. This is the best,” he had said.
Previously in his tabling of the Supply Bill 2023, Anwar had announced that the government would give a one-off RM500 injection to EPF members aged between 40 and 54 with savings of below RM10,000.
During the debate on the budget, several lawmakers, however, pressed the government to allow targeted withdrawals for those in dire need of funds, to help citizens affected by the aftermath of the Covid-19 pandemic as well as inflation brought about by the economic downturn. – The Vibes, March 11, 2023
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