Use of EPF savings as collateral for loans does not violate Act, says Anwar

IPOH: The method of allowing contributors to use the funds in the Employees Provident Fund (EPF) as collateral for bank loans does not violate the EPF Act, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the matter had been discussed with the EPF and there were no obstacles to implementing it.

Anwar, who is also Finance Minister, said that the method is to help certain cases.

"...but there are urgent cases, for example, contributors have savings but can't afford to pay their children's education fees abroad, we give consideration to these cases," he told reporters after launching the 2023 World Water Day celebration at the Indera Mulia Stadium here on Saturday (March 11).

Anwar announced in the Dewan Rakyat on Thursday that the government would introduce a method that would allow contributors who are in dire straits to take up loans from a bank with a collateral from their EPF.- Bernama