THE government should allow people to withdraw their savings from the Employees Provident Fund (EPF) to enable them to make ends meet, Anwar Ibrahim said today.

The opposition leader said he was initially hesitant to endorse such withdrawals, but looking at the people’s sufferings, such a step was needed.

“I was reluctant to endorse this as it would have an impact on the savings of EPF members in future, although I realised my stand would be unpopular with the public,” he said in a statement.

The Port Dickson MP said the government and Finance Minister Tengku Zafrul Tengku Abdul Aziz had failed to help the people who had suffered losses during the recent floods.

“I keep hearing people’s complaints, especially while on my tour of Johor. They are desperate,” the PKR president said.

“Looking at the current situation, I am urging the government to allow EPF withdrawals without any condition or bureaucracy.”

Anwar said the government should also take note of those who are not EPF contributors.

Last week, former prime minister Najib Razak called again for the government to allow further withdrawals under the EPF’s i-Citra scheme, saying this was to meet the needs of the people.

The Pekan MP said this would be the fourth time he had made the call.

“It doesn’t matter who wants to claim the credit,” he said when debating the royal address in the Dewan Rakyat.

“As long as the request for this final withdrawal, which people are really looking forward to, can be granted by the government immediately.”  

Previously, the government had allowed withdrawals from EPF savings through a series of initiatives, namely i-Sinar, i-Citra and i-Lestari.

EPF said the withdrawals benefited 7.34 million members or 58% of 12.6 million members under 55 years old with a total withdrawal amounting to RM101 billion. 

Due to the special withdrawals, the percentage of members with basic savings (RM240,000 at 55 years) fell sharply from 36% in 2020 to 30% at end-2021. 

EPF said there were also 46% of members below the age of 55 who have less than RM10,000 in their retirement fund. 

Last week, the fund announced a 6.1% dividend for its contributors. – March 9, 2022.