Malaysia

Not stupid to use EPF funds as collateral for emergency loans: Anwar

Govt has also contributed to accounts with low balances, notes PM

Updated 3 years ago · Published on 19 Mar 2023 8:17PM

Not stupid to use EPF funds as collateral for emergency loans: Anwar
Datuk Seri Anwar Ibrahim (left) has cefended the government’s move not to allow more emergency EPF withdrawals, as it will affect the agency and reduce the dividends of depositors. – AZIM RAHMAN/The Vibes pic, March 19, 2023

by Adam Ayzzat

KUALA LUMPUR – Using Employees Provident Fund (EPF) contributions as collateral for bank loans is not a “stupid” decision as it aims to help those in need, said Prime Minister Datuk Seri Anwar Ibrahim. 

This was Anwar’s response to the opposition who criticised him for allowing the use of retirement savings as security for emergency loans.

Anwar, who is finance minister, also pointed out that the government had made contributions to the EPF accounts of those with low balances.

“The opposition said the prime minister is stupid, as people are asking for (EPF) fund withdrawals (and not loans),” said Anwar in a Youth Empowerment Fair dialogue session at Kuala Lumpur Convention Centre today. 

“I (have already) provided RM500 for the poor, for those with less than RM10,000 (in their EPF). It is not stupid as it is important for the sake of the people. Maybe it will not be felt today, but they will have more funds when they retire.”

Datuk Seri Anwar Ibrahim says that despite EPF funds not being immediately withdrawable, the government continuously provides measures to assist the people, such as increments in allowances and financial aid. – AZIM RAHMAN/The Vibes pic, March 19, 2023
Datuk Seri Anwar Ibrahim says that despite EPF funds not being immediately withdrawable, the government continuously provides measures to assist the people, such as increments in allowances and financial aid. – AZIM RAHMAN/The Vibes pic, March 19, 2023

Anwar defended the government’s move not to allow more emergency EPF withdrawals, as it will affect the agency and reduce the dividends of depositors.

Anwar added that despite the funds not being immediately withdrawable, the government continuously provides measures to assist the people, such as increments in allowances and financial aid.

The Tambun MP also called out former party leaders who allegedly misused government funds, saying their forgiveness lies with the people.

“To those who imprisoned me, who kicked me to a pulp, I have forgiven you,” he said.

“I want to inform the Islamic party leaders of our nation: you have stolen millions, I do not have the right to forgive, it lies with the people,” he added.

Concluding his dialogue session, Anwar reminded the audience that their continued support is what the government needs, and rallied them to improve the nation.

“Remember, I need the support of the youth and all Malaysians,” he said.

“It is time for Malaysia to chart a new history. No more corruption, stop racism, stop religious bigotry, let us work together.” – The Vibes, March 19, 2023 

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