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KUALA LUMPUR: Malaysia’s Ministry of Finance announced on Thursday (Nov 26) that more than 8 million members of the Employee Provident Fund (EPF) can now make withdrawals from their account 1 if their source of income has been affected for the COVID-19 pandemic. .
The withdrawal limit has also been raised to RM10,000 (US $ 2,457), said Finance Minister Tengku Zafrul Tengku Abdul Aziz. Previously, the withdrawal was capped at RM9,000 for those with an account balance below RM90,000.
Concluding the policy stage debate on the 2021 budget in parliament, Tengku Zafrul said that the scope of those who were allowed to withdraw through the i-Sinar program has been extended to all members who have lost their work, leave without pay or have no other source of income.
“From 2 million members before this, i-Sinar is now accessible to more than 8 million members.
“As long as their income has been significantly affected by the pandemic, they are allowed to withdraw their savings from account 1,” he said.
READ: ‘I want to buy my kids a good meal’: Some Malaysians are relieved they can now dip into retirement funds, others vow to be cautious
The withdrawal of the pension fund has been one of the key issues discussed by members of Parliament (MP) during the debate.
During the budget presentation on November 6, the Finance Minister had announced that the government would only allow those who lost their jobs due to pandemic 1 to withdraw from their EPF account. The allowed amount was 500 ringgit per month, with a total of up to RM6,000 in one year.
Former Prime Minister Najib Razak suggested that the allowable withdrawal amount should be more than RM10,000.
Subsequently, EPF announced on November 16 that those with an account balance below RM90,000 could withdraw up to RM9,000.
For accounts with a balance of more than RM90,000, account holders will be able to withdraw up to 10 percent of their savings with the maximum amount limited to RM60,000.
Tengku Zafrul said Thursday that members can apply online or go to any EPF office across the country and submit proof of job loss, notice of unpaid leave, pay, subsidy or reduction of overtime, or income. affected for independent workers.
Following a question from Pontian deputy Ahmad Maslan about how much this effort would cost, the minister said 70 billion ringgit.
He also assured that, given the RM960 billion in assets owned by EPF and an annual inflow of RM80 billion, this government effort would not affect dividends for members or returns for EPF.
Subsequently, the budget was approved at the policy stage by a voice vote.
Malaysian Finance Minister Tengku Zafrul Tengku Abdul Aziz delivered the 2021 budget speech on November 6, 2020 (Photo: Malaysia Information Department).
The EPF, which is meant to support Malaysians after retirement, had in the past only allowed early withdrawals under very strict conditions.
Before the pandemic, Malaysians who needed to withdraw money from their account prior to retirement could only do so from Account 2 of their retirement savings for the purpose of buying or fixing a house or for medical emergencies.
Until the retirement age of 60, Account 1 was prohibited for account holders, operating in a similar way to a fixed deposit account that received annual dividends.
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