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KUALA LUMPUR: An official announcement will be made soon about the extension of the loan moratorium for all and the one-time withdrawal from Account 1 of the Employee Provident Fund (EPF), says Datuk Seri Shahidan Kassim.
The president of the Perikatan Nasional Backbenchers’ Club (PNBBC) hinted that an agreement had been reached in principle on these issues and it is expected that the Finance Minister, Tengku Zafrul Tengku Abdul Aziz, will make the changes before the settlement of the 2021 Budget.
“Perhaps the Finance Minister will make an official announcement even before the budget is cleared,” he told a press conference in Parliament.
He was asked to comment on the former prime minister and president of the Barisan Nasional Backbenchers’ Club, Datuk Seri Najib Razak, who said that the coalition’s support for the 2021 Budget was conditional on people being able to withdraw from the EPF and an automatic extension of loan moratorium during COVID-19.
Shahidan said the decision was made known during a meeting prior to discussion with government deputies.
He said the government was prepared to make amendments to the proposals of its Perikatan allies, before the 2021 Budget was approved in Dewan Rakyat.
“We want to see a conclusive approach, but that’s Barisan’s opinion.
“But I think everyone will support the 2021 budget,” he said.
He also reminded government legislators, ministers and deputy ministers to be present in Dewan during the 2021 budget discussions.
“If they are not present, I will personally scold them,” he added.
During the presentation of the Budget 2021 last Friday (November 6), the government announced the authorization for EPF taxpayers to withdraw RM500 per month from their Account 1 for a period of 12 months, with which the total amount will not exceed the RM6,000.
This is RM6,000 in addition to the authorization of withdrawal under the i-Lestari scheme from Account 2 announced in the economic stimulus package at the end of March.
In the budget, the government had proposed that those in group B40 who are beneficiaries of aid programs, as well as microentrepreneurs, will have the option of deferring the loan payment for three months, or reducing their monthly payment by up to 50%. for six months.
On Tuesday, Barisan Nasional had declared only conditional support for Budget 2021, which will be voted on by MPs in Parliament on November 23.
The Pekan MP said the 42 MPs from Barisan would only support the 2021 Budget if two of their demands were met: a blanket moratorium on loan repayments until June 30, 2021 and allowing Malaysians a one-time withdrawal of RM10, 000 from your Employee Provident Fund (EPF) account 1.
Najib described the extension of the loan moratoriums until June next year and the one-time payments from the EPF as bold and unconventional steps, saying that these two measures could increase the circulation of cash in the economy when public spending is limited.
“Not a single person has said that the money withdrawn from EPF cannot be recovered in the future.
“The government’s responsibility is not to deny taxpayers access to their money when they are desperate.”
Instead, Najib said, the government’s priority should be to find ways to ensure that EPF contributors who were forced to withdraw funds from their account 1 are not left with a low balance after the pandemic ends.
“Find ways to increase your savings at the fastest rate,” he said, adding that the government should also help EPF make more profit once the Covid-19 pandemic is over by offering them lucrative contracts.
At the same time, Najib said that EPF withdrawals should be a one-time payment and not scheduled monthly payments.
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