5.3 million people applied to withdraw RM40.1 billion under EPF's fourth Special Withdrawal facility

SHAH ALAM - A total of 5.3 million people have applied to withdraw RM40.1 billion under the Employees Provident Fund’s fourth Special Withdrawal since April 1.

The special withdrawal facility allows members to withdraw up to RM10,000 per person from their savings, regardless Account 1 or 2.

As of 8pm on April 14, EPF in a statement said, the total applicants received was 44 per cent out of the 11.95 million members eligible to withdraw their savings under the facility.

It said payments for these special withdrawals will be made in stages effective April 20.

"Breaking down by wage groups, this represented 55 per cent of eligible B40 members (those earning less than RM1,700), 59 per cent of M40 members (RM1,701 - RM4,900), and 39 per cent of T20 members (earning above RM4,900). A further 29 per cent of informal and inactive members also applied,” it said.

Informal members here refer to those who are self-employed or not under any formal employment arrangements, also known as the Gig Economy. These members are not mandated to contribute but allowed to make voluntary contributions, while inactive members are those who have not contributed for over a year.

EPF also stated that the Bumiputera Malays were the majority of applicants at 63 per cent followed by the Chinese at 12 per cent and Indians at 7 per cent. The remaining 17 per cent were of Sabah and Sarawak Bumiputeras, as well as non-Malaysians.

“The top three reasons for applying included the reduction in income/wage (24 per cent), assist affected spouse/family members (23 per cent), and to increase sources of income (14 per cent).

“Utilising of proceeds will be for the purpose of supplementing daily/monthly essential expenditure (40 per cent), settling outstanding debts (26 per cent), increasing emergency fund (8 per cent) and assisting affected family members (7 per cent),” it said.

EPF said the remaining 27 per cent stated that it was for other purposes such as paying for children’s education, non-essential expenditure and investment.

EPF said the closing date for the Special Withdrawal facility is on April 30.

Members can still apply through the pengeluarankhas.kwsp.gov.my portal.

EPF also highlighted that they have heightened the security aspect of withdrawal process to prevent irresponsible third parties or scammers from making false applications that can affect the member’s savings.

It also reminded members not to share photos or documents related to the Special Withdrawal on social media platforms.

“Be careful when withdrawing your money to avoid becoming a victim of fraud and scam activities,” it said.

However, EPF stressed the importance of the readily available long-term income and only to withdraw their savings only when necessary and only spend for appropriate purposes.

More information on the Special Withdrawal can be found at ‘Ask ELYA’ on EPF’s website at www.kwsp.gov.my, EPF official social media such as Facebook, Twitter and Instagram as well as contact the Special Withdrawal Hotline at 03-8922 4848.

Members are also encouraged to seek advice from EPF Retirement Advisory Services officers at any EPF branches nationwide regarding their EPF savings.