Let those truly in need withdraw from their EPF, urges Ismail Sabri

KUALA LUMPUR: A comprehensive study must be carried out to allow another round of targeted Employees Provident (EPF) withdrawals for those truly in need, says Datuk Seri Ismail Sabri Yaakob.

The former prime minister said that there were many out there who were still in debt as they could not repay their loans and had to declare bankruptcy.

"A detailed study needed to be done immediately so those who are truly qualified will be allowed to withdraw their EPF savings with a set of conditions.

"Although we all know that EPF savings are for our retirement, what does it mean if some retire in bankruptcy," he said during his debate on the motion of thanks on the Royal Address on Tuesday (Feb 21).

Last Thursday (Feb 16) Deputy Finance Minister I Datuk Seri Ahmad Maslan revealed that the median savings in the EPF accounts of all Malaysians declined 50% to RM8,100 in 2022 from RM16,600 in the year before the Covid-19 pandemic hit.

More than RM145bil was withdrawn by 8.1 million individuals during the pandemic under four special withdrawal schemes, he added.

Ismail Sabri, who was also the Bera MP, hoped that the EPF would not purely think about their investments in order to gain large profits, while many of its contributors are suffering.

"I believe that the withdrawals will only involve a small amount from the total assets under the EPF's management, which has reached almost RM1 trillion," he added.

On a separate matter, he also urged the Lembaga Tabung Haji to introduce different Hajj packages based on different time periods for potential pilgrims in order to address the increase of cost for the pilgrimage.

He explained that the duration of the Hajj, which currently can reach 40 days, is one of the factors that contribute to the increase in the cost for pilgrims.

He proposed that Tabung Haji offer a package of 14 days, 21 days, 30 days or 40 days as part of the option to all pilgrims and to allow more people from the below 40 (B40) and the middle 40 (M40) income group to fulfil their pilgrimage.