KUCHING, March 17: The ability to make a withdrawal of up to RM10,000 from the Employees Provident Fund (EPF) is a timely solution for those economically-affected during these difficult times, said Sarawak United Peoples’ Party (SUPP) Stakan branch chairman Dato Sim Kiang Chiok.
Sim in a statement today said the positive outcome from the move is that members who really need the money will be able to settle their needs in this pandemic affected economy and job market.
“With such high uncertainty in our world due to Covid-19 pandemic, the Russia-Ukraine war, the cost of living is set to rise due to inflation and rising price of oil and gas, lowered purchasing power of our ringgit, and the ending of the automatic bank loan repayment moratorium.
“Allowing this EPF withdrawal can be a timely solution for families to get their basic needs in this unprecedented time,” he said.
Sim noted that the move would not affect the fiscal position of the government.
However, he said the negative side of it is the savings of the withdrawing members might not be sufficient for their retirement needs.
According to Sim, EPF members have been able to access up to RM71,000 from their retirement funds through three previous EPF withdrawal programmes, which amounted to RM101 billion.
“EPF has reported that a total of 6.1 million members, or 48 per cent of its members under the age of 55, had less than RM10,000 in savings in their retirement funds,” he said.
He also pointed out that there are several proposals by Members of Parliament to help, by assisting EPF increasing earnings by awarding high yield government’s projects to it.
As such, he advised, with a good dividend announced by EPF over the years, it makes good sense to maintain one’s savings with the retirement fund. — DayakDaily
