EPF worries contributors are depleting savings, says special withdrawal should be the last

KUALA LUMPUR: The RM10,000 special withdrawal announced on Wednesday (March 16) should be the last such facility allowed, says the Employees Provident Fund (EPF).

In a statement, it also reiterated its concerns about contributors depleting their savings.

“As the country rebuilds the economy and more people have returned to work, the EPF believes that this should be the last facility allowed under the special withdrawal initiative,” the fund said.

"The EPF would like to reiterate its concerns around members’ retirement adequacy and hopes this will be a precursor to the rebuilding of retirement savings and reforming of the nation’s social security system,” it added.

EPF said further details on the application for withdrawal and payment mechanisms would be announced soon.

“This will be the fourth withdrawal after i-Lestari and i-Sinar in 2020 and i-Citra in July 2021, to meet the urgent cash flow needs of members during the periods of the movement control orders (MCO) and the subsequent economic slowdown,” it said.

As of the end of last year, total withdrawals from the three facilities amounted to RM101bil, it added.

Earlier, Prime Minister Datuk Seri Ismail Sabri Yaakob announced another special facility to allow contributors to withdraw a further RM10,000 from their EPF savings.

However, he also appealed to members to ensure that they still had some savings left in their account for a rainy day.