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PETALING JAYA: The Employee Provident Fund recommended to its members not to withdraw savings from Account 1 to address the challenges brought on by Covid-19.
Echoing Prime Minister Tan Sri Muhyiddin Yassin’s advice, the EPF said tapping retirement savings into Account 1 could cause further problems for taxpayers in the future.
“The prime minister’s reminder is difficult to keep as people are struggling to find the right balance between surviving for today and preparing for tomorrow,” EPF CEO Alizakri Alias said in a statement.
He added that the pandemic has impacted the lives of Malaysians, and said that some have even lost jobs and sources of income.
“We see really harrowing cases where Malaysians struggle daily to put food on the table to feed their families and keep a roof over their heads,” Alizakri said.
Alizakri said allowing members to leave Account 1 could harm their future well-being and recommended that members reach out to EPF Retirement Advisory Service (RAS) officers to help them plan their finances as they face the challenges. current challenges.
He said that accessing Account 1 funds should not be the only way for members to get through tough times, as the government has provided numerous means of direct financial assistance.
Alizakri said this includes Prihatin, Prihatin SME +, Penjana and Kita Prihatin adding that this equates to RM55 billion for the B40 and M40 as well as other target groups and the newly vulnerable.
At the opening of the Koperasi SungaiTerap / Sungai Raya Muar Bhd annual general meeting in Pagoh on Friday (October 30), Muhyiddin warned that allowing members to withdraw from their EPF savings would pose a problem for the government.
He said this following former Prime Minister Datuk Seri Najib Razak’s proposal that the government allow taxpayers to make a one-time withdrawal of up to RM10,000 from Account 1 to help with the challenges brought on by the pandemic.
Muhyiddin also assured that the 2021 Budget, which will be presented on November 6, will take into account the measures necessary to address the challenges of the people in these difficult times.
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