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PETALING JAYA: Prime Minister Muhyiddin Yassin said today that the government finally allowed members of the Employee Provident Fund (EPF) to make withdrawals from Account 1 as a result of public pressure.
He said in a television interview tonight: “Our hearts were heavy. It’s not that we didn’t want to allow it … We wanted to make sure the future of taxpayers was secure. They could now withdraw from account 2 and now from account 1. What balance would they have (when they retire)?
Muhyiddin said that he told Finance Minister Tengku Zafrul Aziz to consider the proposal because of “the many calls in favor, and I could see that there were some who were really affected and maybe even had no money.”
The decision on Account 1 withdrawals was one of the most anticipated announcements in the 2021 budget presented yesterday. It allows those who lost their job to withdraw RM500 per month starting in January, for up to 12 months or a maximum of RM6,000, from the account that is the EPF member’s pension fund.
Withdrawals from Account 2 of up to RM6,000 per taxpayer were also announced yesterday. Account 2 is generally used to pay down payments on the house, medical bills, or other important expenses.
