JOHOR BARU – The one-off Employees’ Provident Fund (EPF) withdrawal is again a hotly debated issue in the Dewan Rakyat today as former prime minister Datuk Seri Ismail Sabri Yaakob (Bera-BN) renewed calls for it to be allowed.
He has proposed that the targeted withdrawals will not detrimentally affect contributors, given many are still working and making contributions to the fund.
“If they are working and earning RM2,000 for example, they (employee and employer) are contributing 23% to the fund which is RM490 a month.
“In a year, they would contribute RM5,520 and in 10 years it would be RM55,200, so we are not emptying the funds by allowing the withdrawals.”
This was backed by Datuk Seri Dr Dzulkefly Ahmad (Kuala Selangor-PH), who urged the federal government to consider the recommendation albeit with stringent requirements.
“I want to support Bera’s proposal but with strict requirements particularly for those who are in extreme economic turmoil.
“This is the time to help, and if it is not possible to do so, we must help in another way,” said Dr Dzulkefly.
This was not welcomed by Deputy Finance Minister Datuk Seri Ahmad Maslan (Pontian-BN).
He added that other countries that have allowed similar withdrawals during the pandemic have ceased as Covid-19 is now in the endemic stage.
However, he assured that there will be ways to assist the lower income B40 groups and it will be revealed when Budget 2023 is retabled this Friday.
“The B40 and M40 have been the most affected by these withdrawals.
“Some 51.5% of EPF contributors below 55 years old have less than RM10,000 in their accounts now,” he said.
Yesterday, Ismail Sabri called on Putrajaya to consider allowing another round of EPF withdrawals, explaining that there are those who are in desperate need of funds now and could not wait until retirement.
Pointing that there are contributors still struggling to repay debt, he said there is no point in having retirement savings if an individual is bankrupt. – The Vibes, February 22, 2023