EPF receives 5.3m applications worth RM40.1b for special withdrawal

 

The Employees Provident Fund (EPF) has received a total of 5.3 million applications worth RM40.1 billion under the special withdrawal facility as of 8pm Thursday (April 14).

The application was opened to members on April 1.

In a statement today, the pension fund said payments would be made in batches, with the first batch set to commence next Wednesday (April 20).

“The number of applications received represented 44 percent out of the 11.95 million members who were eligible to withdraw their savings under the facility.

“Breaking down by wage groups, this represented 55 percent of eligible B40 members (those earning less than RM1,700), 59 percent of M40 members (RM1,701 - RM4,900), and 39 percent of T20 members (earning above RM4,900),” it said.

It said a further 29 percent of informal and inactive members also applied.

EPF said bumiputera Malays made up the bulk of applicants at 63 percent, followed by the Chinese (12 percent) and Indians (seven percent), while the remaining 17 percent were bumiputera from Sabah and Sarawak, as well as non-Malaysians.

“Based on feedback from members applying for the facility, the three top reasons for applying included reduction in income/wage (24 percent), to assist affected spouse/family members (23 percent), and to increase sources of income (14 percent),” it said.

“While the utilisation of proceeds will be to supplement daily/monthly essential expenditure (40 percent), settling outstanding debts (26 percent), increasing emergency fund (eight percent) and assisting affected family members (seven percent) with the remaining 19 percent for other purposes such as paying for children’s education, non-essential expenditure and investment,” it said.

Potential scams

EPF said it has put in place measures to prevent irresponsible third parties or scammers from making fake submissions and posing a danger to members’ savings.

“Members are strongly advised not to share photos or documents of their special withdrawal submissions on social media and to exercise caution when withdrawing their money to avoid falling victim to potential scams and fraudsters.

“The EPF reminds members to consider their long-term income security and only withdraw their savings if it is absolutely necessary and utilise the money wisely and for appropriate purposes,” it added.

The special withdrawal facility will be closed on April 30.

- Bernama