More M'sians allowed to tap into EPF, withdrawal ceiling raised to RM10,000

Focus

By MINDERJEET KAUR

16 Mar 2022 01:40pm

PM Datuk Seri Ismail Sabri Yaakob has allowed the EPF withdrawal of RM10,000 but cautioned depositors to do so wisely. - Bernama Photo

SHAH ALAM: Prime Minister Datuk Seri Ismail Sabri Yaakob today announced that Malaysians will be allowed to withdraw up to RM10,000 from their Employees Provident Fund (EPF).

He said those affected have been requesting to ease their burden after the pandemic.

"We hear your request to withdraw," he said in a special announcement today.

However, he asked Malaysians to be cautious with their old-age funds and only to use the funds if contributors are in need of cash.

The withdrawal as allowed under i-Lestari, i-Sinar and i-Citra amounting to RM101 billion. He said the details will be released by the Finance Ministry soon.

In an immediate statement, Datuk Seri Tengku Zafrul Aziz said the details of the withdrawal will be finalised by EPF soon.

"EPF will also announce measures as contributors' funds deplete," he added.

This comes after Zafrul warned that the retirement fund may have to sell more of its investment assets overseas if the government allows contributions to another round of withdrawals.

He further told the Dewan Rakyat two days ago that EPF's dividend for conventional savings for 2021 could have reached 6.7% instead of the 6.1% it recently reported, if not the three previous rounds of withdrawals.

He had said if the government allows another one-off withdrawal of RM10,000, the 6.3 million contributors eligible for this might take out an estimated RM63 billion.

He had warned that this would force the statutory body to sell more of its assets overseas.