Allowing further EPF withdrawals will burden future generations - Zafrul

 

Finance Minister Tengku Zafrul Tengku Abdul Aziz said the government would be burdening future generations if it allowed further withdrawals from the Employees Provident Fund.

He said during the Covid-19 pandemic, the government had already allowed withdrawals of up to RM71,000 due to the unprecedented situation.

He stressed that the Putrajaya has never historically allowed for EPF withdrawals during disasters such as floods as the government has already prepared aid and cash assistance.

This was amid demands to allow further withdrawal from EPF, particularly for people who have been devastated by last month's floods.

"The proposed populist move by certain quarters is not the right one.

"In the end, people would be impacted in the long-term, and their children and grandchildren will face the burden of supporting them," he said in a statement on Facebook.

Tengku Zafrul also questioned the intentions of those who are pushing the withdrawal on the premise that it was to help the bumiputera community.

"Almost 50 percent (six million) of contributors have a saving of less than RM10,000," he said.

He said 74 percent of them are bimputera and more worrying, 79 percent of them have less than RM1,000.

"What is their real intention of advocating more withdrawal if they truly want to champion the welfare of the Malays when they know many do not have enough savings?" he said.

Tengku Zafrul said a person needs RM240,000 to fund their retirement for 20 years at RM1,000 a month.

"With less than RM10,000, six million members cannot have a secure retirement.

"Additional withdrawals will cause almost seven million members to have less than RM10,000 in savings.

"It will also force EPF to divest its investments which will reduce members' dividends. This will have a knock-on impact on the bond and stock markets and erode the confidence of local and foreign investors," he said. - Mkini