KUCHING: The government should stop contributors from withdrawing savings in their Employees Provident Fund (EPF), said Universiti Malaysia Sarawak (UNIMAS) honorary professor Datuk Dr Madeline Berma.
She was commenting on the announcement by Prime Minister Datuk Seri Ismail Sabri Yaakob today who agreed to allow EPF contributors to make a special withdrawal of RM10,000.
According to her, the savings were for the constributors’ future, after their retirement.
“It’s an important retirement fund to prevent more contributors from falling into poverty after retirement.
“It is estimated that 46 per cent of EPF members (aged 55 and below) only have a total contribution of RM10,000,” she said today.
In fact, she said, the continued withdrawal of the savings money would cause a decrease in the EPF dividend rate.
“As explained by the Finance Minister earlier, the EPF dividend in 2021 is 6.1 per cent.
“If there is no production, the dividend is 6.7 per cent,” she stressed.
Earlier, the prime minister stressed that the decision to authorise the withdrawal of the EPF contribution was a difficult decision.
“This special withdrawal is a middle ground in balancing between today’s urgent needs and future savings,” he said.
The previous government also allowed the withdrawal of EPF contributions through three schemes, namely i-Lestari, i-Sinar and i-Citra, which totalled RM101 billion and involved 7.34 million contributors since COVID-19 hit the country two years ago.
