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KUALA LUMPUR: Withdrawal of savings by members of the Employee Provident Fund (EPF) under the i-Sinar program is the best option for selected individuals to help them survive the post-pandemic situation, said an economist .
Bank Islam Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid said the plan was aimed at helping affected people who have lost their jobs and are subject to pay cuts.
“There is a need for cash assistance in the immediate term and withdrawing your EPF savings is one of the means to alleviate your difficult financial situation,” he told Bernama.
However, he said it was also necessary to ensure that EPF members’ retirement savings are preserved as more people tend to live longer these days.
He said better coordination between the various measures implemented by the government was crucial to ensure everyone knows where to seek help.
“What matters now is the effective implementation of these measures, such as the cash transfer program through Bantuan Prihatin Nasional (BPN), Bantuan Prihatin Rakyat (BPR), targeted financial assistance offered by banks, grants, job search , Employment Insurance Plan (EIS) among others ”, he added.
Meanwhile, MauKerja.my CEO Ray Teng said the latest EPF scheme should only be used by those who lost their jobs and experienced major cash flow problems.
“There are pros and cons to this issue. People have the option to use the program or not, but if they really need the cash and there is no other way, they should use the program, ”he said.
However, he said that i-Sinar was a temporary measure for people to use their retirement savings and continue to survive financially, but it would cost them and EPF some cash flow from future mutual funds.
“Of course, if you decide that you don’t need to use your savings through the i-Sinar program, EPF will have more money to invest, which will benefit us in terms of dividends in the future,” said Teng.
On Monday, the EPF announced that i-Sinar would benefit two million eligible members with an estimated advance of RM 14 billion to be made available.
Eligible members will have access to an advance of up to RM9,000 for those with savings in Account 1 of RM90,000 and less, and up to RM60,000 for those with more than RM90,000 in Account 1. – Called
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