KUALA LUMPUR – To replenish the Employees Provident Fund’s (EPF) withdrawal made under i-Lestari, i-Sinar, and i-Citra, the statutory body will place contributions from members into their Account 1 until the withdrawal amount is replenished, said Deputy Finance Minister I Mohd Shahar Abdullah (Paya Besar-BN).
“For contributors who have made withdrawals recently, the government has decided contributions received from members will be credited to their Account 1 until the withdrawal amount is topped up.”
He told the Dewan Rakyat that Malaysians may have withdrawn up to RM100 billion from their EPF accounts, but this will not affect the domestic market.
He added that EPF is a key player in Malaysian Government Securities, and that there are no negative effects on the returns from strategic investments.
Meanwhile, he said after i-Sinar and i-Citra withdrawals were made by contributors, it is estimated only 27% of active EPF members have savings in Account 1 that exceed the basic savings quantum based on age.
“On December 31, 2020, there were 36% of members with savings exceeding the quantum before i-Sinar and i-Citra withdrawals from Account 1 were allowed.
He added that Putrajaya is studying new methods to increase EPF savings within five years.
Among them includes the introduction of i-Sayang and i-Lindung that will be implemented by the first quarter of next year to ensure EPF savings are guaranteed.
EPF previously reported a drop in savings among its members after the introduction of i-Lestari, i-Sinar, and i-Citra.
Currently, 6.1 million EPF members have less than RM10,000 in their accounts, of which 3.6 million have less than RM1,000 in their EPF accounts. – The Vibes, November 24, 2021
