KUALA LUMPUR – Former prime minister Datuk Seri Najib Razak argued that the Employees Provident Fund (EPF) has its priorities wrong vis-à-vis the latter’s reservations in allowing a large one-off pension fund withdrawal.
He disagreed with the reason cited by EPF CEO Tunku Alizakri Alias – that it would hurt investment opportunities – adding that EPF's focus right now, amidst the ongoing Covid-19 pandemic, should be on the people, not investments.
“I do not agree with the view that if we allow a one-off withdrawal of RM10,000 from Account 1, investment opportunities will be affected.
“These are desperate times; the situation is critical. This is a matter of the people’s livelihood. It is no longer a matter of investment,” Najib stressed in a Sinar Harian talk show on Budget 2021.
Najib however, is confident that Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz understands the gravity of the situation, especially the people’s struggle due to the viral plague.
“But the EPF management still seems to be protecting their own interests.
“This is a demand from the people. If I was the finance minister, I will give an ultimatum. Give them an instruction. If he (Alizakri) does not comply, then he needs to step down,” said Najib.
He also contended that allowing more members to withdraw from Account 1 can inadvertently result in a capital injection for the country’s economy.
“Domestic demand will increase. Economic activity will be sped up. This is not a populist demand, but it is a matter of the people’s survival,” Najib remarked.
EPF had previously announced that savings withdrawal from Account 1 – via the i-Sinar facility – are opened for 2 million members who have zero income, unemployed or had been forced to take unpaid leave. — The Vibes, November 19, 2020