Anwar: I Can Be Popular By Allowing EPF Withdrawal, But Can A Responsible Person Do That?
"We must understand that EPF is for the fund to be used once we retire," he said.
By Sadho Ram — 20 Mar 2023, 02:49 PM
Prime Minister Datuk Seri Anwar Ibrahim has consistently voiced out against allowing special withdrawal of the people's retirement savings
According to Anwar, allowing any more Employees Provident Fund (EPF) withdrawals would negatively impact the investments and, in turn, affect the dividends paid to the contributors.
"We must understand that EPF is for the fund to be used once we retire. During the lengthy Movement Control Order (MCO), I also proposed the withdrawal at the time since people did not have money or jobs," he shared at a youth empowerment dialogue session in Kuala Lumpur yesterday, 19 March.
The situation now has changed, he contended.
"...80 to 90% of them have gone back to work. If we still allow withdrawal, it will affect the investment opportunities, the dividends will also become lower," he added, as reported by New Straits Times.
He said the government will find other ways to ease the burden on the people while ensuring that the investment funds are not affected
Among the ways the government is looking to assist people is by adding bonuses, allowances, and assistance to farmers and fishermen, Anwar said at the event hosted by actress Amelia Henderson.
According to the prime minister, the government's plan of giving RM500 to EPF contributors with savings of RM10,000 or less is to enable the money to be invested in retirement savings.
He said that the RM500 grant will give dividends and additional money to contributors' retirement savings.
"It will benefit them, even if not today, but when they retire in future. Not many people are actually pushing (for EPF withdrawals), only a small number, but it has been made into a political issue," he added.
Anwar claimed that he could either become popular or act responsibly
I can be popular and allow the withdrawal of EPF, but can a responsible person do that?
The prime minister said that he wants to be a responsible leader, which is why he had earlier announced a scheme to allow EPF contributors to use their Account 2 savings as collateral for bank loans.
The scheme will allow flexibility for contributors from the informal sectors, with Anwar claiming that it is also a much better option for those who are tied with their business debts, which can reach up to RM200,000.
