Govt proposes allowing up to RM10k to be withdrawn from EPF

KUALA LUMPUR: The government has proposed allowing members to withdraw up to RM10,000 from Account 1 of their Employees Provident Fund (EPF), says the Finance Minister.

Datuk Seri Tengku Zafrul Abdul Aziz said those who have been affected by the Covid-19 pandemic and have lost their income or are experiencing a reduction in revenue or business are now eligible to withdraw money from their Account 1 under the i-Sinar facility.

He said many MPs and the rakyat have been urging the government to allow individuals to withdraw from their Account 1.

"After discussing with EPF management this morning, I would like to announce that the i-Sinar facility be now open to all members whose income have been affected due to the pandemic.

"It does not matter if the member is an active contributor or not, so long as they can show proof that they are affected by the pandemic, then they qualify to withdraw money from their Account 1," said Zafrul, which was met by thumps on the table by MPs.

In his winding up speech of Budget 2021 in the Dewan Rakyat on Thursday (Nov 26), Zafrul also said that currently, EPF members are only allowed to withdraw RM9,000.

"They just need to file an online application, or go to an EPF office to show proof that they have lost their jobs, have had their allowance or overtime claims reduced or stopped, or their business is not doing well," he said.

He added that eight million EPF members can now qualify for this proposed initiative.

The government also announced a one-off payment of RM300 to all frontliners including members of the police, Immigration, Rela and those recognised under the National Disaster Management Agency (Nadma).

The one-off RM50 vouchers for e-wallets will be increased to RM100 and will benefit 1.1 million students in private and public higher learning institutions, including those aged 20 and above.