EPF: RM40 Billion Withdrawn!

The Employees’ Provident Fund (EPF) has received 5.3 million applications amounting to RM40.1 billion under the Special Withdrawal facility, just two weeks after opening for applications.

The pension fund said payments are to be made in batches, with the first set to commence on April 20. The number of applications received represented 44% of the 11.95 million members eligible to withdraw their savings under the facility. By wage groups, this represented 55% of eligible B40 members (those earning less than RM1,700), 59% of M40 members (RM1,701-RM4,900), and 39% of T20 members (those earning more than RM4,900).A further 29% of informal and inactive members had also applied.

Source: https://ms.wikipedia.org

EPF said Bumiputera Malays made up the bulk of applicants at 63%, followed by Chinese (12%) and Indians (7%) while the remaining 17% were non-Malay Bumiputeras from Sabah and Sarawak and non-Malaysians. The three top reasons for applying included reduction in income/wage (24%), to assist affected spouse/family members (23%) and to increase sources of income (14%). Of this, 40% said it will be for the purpose of supplementing daily/monthly essential expenditure, settling outstanding debts (26%), increasing emergency fund (8%) and assisting affected family members (7%). The remaining 19% said it was for other purposes such as paying for children’s education, non-essential expenditure and investment.

EPF said it has put in place measures to prevent irresponsible third parties or scammers from making fake submissions.

The Special Withdrawal facility will be closed on April 30.

There is only a 10-day window to withdraw one’s savings built-up over years. The key problem is the need for Government assistance for the disadvantaged. This (withdrawal) is not Government assistance. When EPF members are using their own money to sustain themselves, it is not a Government scheme. The bigger question is how they will replenish their retirement nest. No clue. So too is the Government – clueless!

It need not come to this. The Government could have formulated a “loan” scheme through EPF for members to settle by way of dividends from EPF or PNB. Was that too difficult?

Reference:

5.3mil EPFmembers apply to withdraw RM40 bil under special scheme, Bernama, FreeMalaysiaToday, 16 April 2022