EMPLOYEES Provident Fund (EPF) contributors are questioning the need to touch their retirement savings after Putrajaya allowed withdrawals from the fund to cope with the economic impact of the Covid-19 pandemic.

They told The Malaysian Insight that it is the government’s responsibility to help its citizens in times like these.

It is a national problem, they said, adding that asking the public to touch their savings is not a solution.

However, some from the bottom 40 (B40) group agreed with Prime Minister Muhyiddin Yassin’s suggestion and said this is a way to help a cash-strapped government.

Even so, they pointed out that RM500 will not be much help.

Yesterday, Muhyiddin said EPF account holders aged below 55 can access their savings to pay for daily necessities under new measures to help people cope with the economic impact of Covid-19.

Withdrawals of up to RM500 a month for a maximum 12 months are permissible from Account 2 beginning April 1.

Mohd Idzwan Zainuddin told The Malaysian Insight the new Perikatan Nasional government should focus on ways to reduce the price of goods instead of allowing the public to withdraw their savings from EPF.

“I do not agree, if the government wants to help, they should not use our money. That is our savings,” said the 34-year-old web designer.

“Maybe they can help by reducing the price of goods so the public, especially the poor, can afford necessities.”

Siti Hajar Mohamad Sedik said the government’s initiative must be lauded, given the country’s current financial situation.

“It is about time and the initiative must be praised. At times like these, we can’t rely on the government for everything.

“The economy is on a decline, plus the withdrawal is temporary and will not affect much of our savings. This is one way to help our government,” said the health awareness consultant.

Mohd Irsyad Hatib agreed with Siti Hajar but said the government must come up with an aid scheme.

“I agree 100%. With the movement-control order in place, some people cannot work and this initiative offers a lifeline, although it is not that much.

“But if the government can think of something to help, why not, because it is also their responsibility as the government,” said the 28-year-old IT consultant.

A bank officer, who only gave her name as Christina, disagreed saying that it is ridiculous for the public to use their savings during a pandemic.

“I will not use my EPF money. This saving is meant for retirement. It is ridiculous to use our own savings.

“The government should do something to help because it is a national problem,” she said.

Christina said Malaysia should follow Canada’s footsteps, which recently unveiled a US$56.4 billion (RM251 billion) stimulus package to help people buy groceries and pay rent.

Malaysia has imposed a two-week partial lockdown to stop the spread of the deadly coronavirus. The public can only leave their homes to buy food, essentials and for medical emergencies.

The virus has so far infected 1,518 people and killed 14 in Malaysia. Yesterday marked the highest daily increase of cases at 212.

Manivannan Letchumanan, an IT manager, also rejected Putrajaya’s initiative of taking funds from his EPF.

“I will not be taking out my money. This is not even a solution. This is forcing us to use our money.

“Maybe the government can exclude the B40 from paying rental, utility bills for let say, two months. They can use the money they save to buy essentials,” he said.

Disputing Christina and Manivanan’s views, Muhammad Zuhaily Badlishah, 31, told The Malaysian Insight that the RM500 could ease the burden of some poor families.

“It is not much but it helps. For example, I am the sole breadwinner. My wife is still studying, so during this sort of crisis, the RM500 helps a lot, especially for the poor,” said the former sports journalist.

Ng Suzhen wants the government to use the bantuan sara hidup (BSH) scheme for the lower-income group.

The 36-year-old private sector worker said the government must come up with a proper plan so everyone could get the help they need.

“To be honest, BSH is necessary for the lower-income group. I would agree that it be provided to them, and not for those who are capable of surviving on our own.

“Those who can afford to should not take advantage of funds meant for those who need it, especially in times like this.

“The government needs to plan this out properly so everyone is able to get the help they need and not just throw ideas around without proper implementation,” she said.

Vincent Lim, a legal counsel, and Mohd Rusid, an engineer, said they won’t touch their EPF funds.

“EPF is meant to be a retirement plan. Sound financial planning would have prepared oneself for an emergency like this,” Lim said.

Rusdi said the RM500 would not do much to help either.

“The situation is bad and I don’t think RM500 would be do much. My house loan repayment alone is RM1,800. Total expenses, including everything for a family of four, comes up to RM4,000 monthly.

“So, if employers decide not to pay us, what happens? Is RM500 sufficient?

“Instead of asking us to take money, they must be able to contribute. The government has money. The ministers should take a pay cut or work without salary for at least six months,” Rusdi said.

Teh Kit Yinn, a part-time worker and full-time PhD student, painted a more ominous picture.

“This shows that Putrajaya is unsure when the Covid-19 crisis will end.

“It can be seen as the government not knowing how long this pandemic will last. So, this is a move to increase buying power.

“Maybe, but in times of uncertain economic crisis, supermarkets have always been built to increase cash flow in markets. That is how I view why the government took this move.

“However, an aid scheme will definitely help, especially for the B40 group,” said the molecular biology student. – March 24, 2020.