Rafizi states four reasons why gov't should not allow EPF withdrawal
SHAH ALAM - Economy Minister Rafizi Ramli states four reasons why the government should be firm in not allowing targeted Employees' Provident Fund (EPF) withdrawals.
Among the reasons was that the EPF was established to ensure contributors had savings for their old age.
He said even if the contributor dies, the savings will be given to their next of kin.
"Contributors may withdraw money for today's needs, but EPF was actually created to ensure workers and Malaysians have savings after retirement.
"Even if we die tomorrow, the savings and contributions will go to our next of kin," he said in a Facebook post today.
Allowing further withdrawals will reduce the people's contributions for their old age savings, he said.
"In the last two years, a total of RM145 billion was allowed to be withdrawn by the previous government.
"When this fund decreases, it will limit the EPF's ability to diversify and strengthen its investment strategy for better profits," he explained.
Sinar Harian previously reported that the opposition MPs caused a minor commotion in Parliament on Monday by walking out en masse from the Dewan Rakyat after the motion to debate the Employees Provident Fund (EPF) withdrawals was rejected.
Commenting further, Rafizi who is the Pandan MP, said the withdrawals will also affect other contributors even when they don't withdraw any money because the overall return is low.
"If the overall EPF return is low, other contributors will also bear the impact because most contributors will not have sufficient savings for their old age.
"For that reason, as announced in the Budget 2023 by the Prime Minister Datuk Seri Anwar Ibrahim, the government's action to disallow any more EPF withdrawals was to increase contributions and old-age savings for the contributors.
"We will not be allowing withdrawal as demanded by a few contributors," he said.
He added that the government is responsible for protecting the people.
"So that's why we chose a path that will bring good to everyone, not the short path that will lead to temporary gains in political popularity but will leave problems for other leaders in the future to solve," he said.
