A group of Employees Provident Fund (EPF) contributors have called on Prime Minister Anwar Ibrahim to consider yet another round of early withdrawals of up to RM30,000.
Speaking on their behalf, Pertubuhan Aktivis Rakyat Malaysia (ProRakyat) president Khairul Anuar Otman said the early withdrawal is needed as a short-term solution for people who have been gravely impacted by the Covid-19 pandemic.
“These contributors have bank loan arrears that need to be settled. Some have lost their jobs during the lockdown period two years ago, while others are starting new businesses and require capital.
“EPF withdrawals are proven to encourage the process of economic recovery, through the purchase of goods, debt repayments, payment of overdue bills, and child expenses,” he said during a press conference in Subang, Selangor today.
If approved, this would be the fifth round of “one-off” EPF early withdrawals in three years, with the previous ones being i-Lestari, i-Sinar, i-Citra, and a special withdrawal.
A contributor, who only wanted to be known as Ann, said she needed the money to settle her debts after being retrenched from her job as a senior legal manager in November 2020.
From earning five figures monthly before the pandemic to almost declaring bankruptcy, Ann called the early withdrawal her “last resort”.
“I was very thankful for the previous withdrawal schemes because that really helped me pay the bills.
“With this money, I can sustain myself on a shoestring budget for at least another five months,” the 52-year-old freelance translator told Malaysiakini.
The EPF targets a minimum of RM240,000 needed to fund a person’s retirement from 55 to 75 years old.
‘Govt has to trust us’
Ann, who is three years shy of the eligible retirement age, believes the withdrawal will help her get back on her feet, even if it means eating into her retirement savings.
“I think the government has to trust us (to manage ourselves in retirement) because we know what is going on in our situation. We will know how to survive.
“I am only three years away from reaching 55 years old. Even then I will continue to work.
“However, with these funds, we can clear off the obstacles that are in the way. I can pick up a translation certification to be able to do my job with a certification,” she added.
Another contributor who only wanted to be identified as Lina said she needed the money to pay for medical bills, rent, and monthly expenses.
“We have been taking loans from our family members but eventually, they will tell you enough is enough.
“It is not that we haven’t tried to look for work. I was previously an accountant but was terminated during the Covid-19 lockdown. I haven’t been able to get a job since,” she told Malaysiakini.
The 50-year-old added that she was unable to afford medical check-ups despite being at risk of developing cancer.
“It is really taking a toll on me. I hope prime minister Anwar will consider our request,” she said.
Depleting retirement savings
Back in March 2022, when he was still with the opposition, Anwar called on the government to allow early withdrawals from the EPF.
The PKR president was reluctant to back such a policy as it will impact the future savings of the people but acknowledged the need for withdrawals due to the desperate situation.
This he said, was because the government had failed to use its coffers to address the people's financial problems and provide the necessary aid.
Not long after, Putrajaya announced the fourth round of withdrawal of RM10,000 to help Malaysians with the impact of the Covid-19 pandemic.
However, the EPF said it would be the last such withdrawal allowed.
Former deputy finance minister Mohd Shahar Abdullah told the Dewan Negara in August last year that the level of savings of EPF members was low, following the four withdrawal programmes.
He said that a total of 6.62 million members or 52 percent of the total of 12.78 million EPF members aged under 55 had savings of less than RM10,000 as of June 2022.
Anwar’s political secretary Azman Abidin who received ProRakyat’s memorandum today said he would submit it to the prime minister for consideration.
“Any decision to approve the application is at the discretion and wisdom of the prime minister,” he said. - Mkini
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