Stop EPF withdrawals for those below 60, says MEF

 

MEF says the government must think of other schemes to assist employees rather than withdrawing from EPF savings meant for their old age.

PETALING JAYA: The Malaysian Employers Federation (MEF) wants the government to halt Employers Provident Fund (EPF) withdrawal schemes before members reach the retirement age of 60.

MEF president Syed Hussain Syed Husman said the recent EPF withdrawals through the i-Lestari, i-Sinar and i-Citra facilities had seen RM101.1 billion being withdrawn. Further withdrawals would risk members falling into old-age poverty.

“Employees do not have sufficient funds upon retirement to take care of their requirements.

“The government must think of other schemes to assist them rather than withdrawing from the EPF savings meant for old age,” he said in a statement today.

Syed Hussain also said it was critical that the current policy of allowing one-third withdrawal upon reaching 50 and withdrawal of all EPF savings at age 55 be reviewed, especially since the retirement age had been raised from 55 to 60.

“It is clear that there is an urgent need for far-reaching solutions covering effective social safety net programmes, robust labour market policies, sustainable economic growth, reskilling and upskilling of the labour force, as well as policies to encourage automation and digitalisation to help increase productivity so that employees have a better chance to earn more, thereby increasing their contributions to the EPF,” he said.

He also stated the Covid-19 pandemic had disrupted the employment landscape and many employees who lost their jobs during the pandemic had entered the informal sector and were not covered by any form of social security.

“The government must also address the need for social security coverage, including old age savings, for those in the informal sector to ensure that no one is left behind,” he said. - FMT