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PETALING JAYA: Those who use the Employee Provident Fund (EPF) i-Sinar service should make sure they don’t end up losing everything by investing in speculative instruments, financial experts warned.
They added that if these investments are profitable, the money must be returned to the taxpayer’s EPF account.
Sunway University Business School professor of economics Dr. Yeah Kim Leng said that the EPF money should only be used to address problems faced by taxpayers and not for other purposes.
He said that those who use the money to invest in gold, cryptocurrencies, stocks, and other investments must realize that there is a possibility that these investments will fail.
“There is the possibility that investments in such things will pay off, but there is also the possibility that a person will lose their shirt.
“People must be aware that they can lose everything and be extremely cautious when making such investments,” he said.
He added that by reducing his EPF savings, taxpayers’ income will also fall, which will affect his retirement.
The problem that exists today is that those in the middle and lower income bracket expect high returns on their i-Sinar money.
“These people cannot afford to suffer major losses, they cannot just shrug their shoulders and walk away from them.
“Their retirement savings are compromised once they get money to make such investments.
“Those in the high-income bracket have the ability to take a hit and still be able to have a comfortable retirement,” he said.
Yes, he urged those who use their i-Sinar funds for investment purposes to ensure that they return the money to their accounts.
He said there is always a need to use money or profits for high-value items and in doing so they are only hurting themselves.
By putting money into investments, they have a duty to ensure that the earnings return to their savings in the long run.
As of March 14, i-Sinar withdrawals of RM 52.48 billion had been approved for 5.94 million applicants.
Finwealth Managing Director Felix Neoh said people should only withdraw their money from the EPF to cover the income gap and not for investments.
He said that if they were going to invest their savings from the EPF, they should make sure their investments could perform better than the fund.
“People planning to invest their EPF money must realize that the market can be very volatile.
“For example, gold is considered a good investment, but its value depends on market sentiment. It can go down as easily as it does up, ”he said.
Neoh said that one of the main purposes of investing is to meet a person’s long-term savings and retirement plans.
He said those who use their i-Sinar money should ensure that all the earnings from their investments are put back into their EPF savings and not used for other purposes.
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