PUTRAJAYA must allow people to make withdrawals from the Employees Provident Fund (EPF) immediately to stop them from resorting to borrowing from loan sharks and unlicensed moneylenders, the Federation of Malaysian Consumers Associations (Fomca) said.

Its president Marimuthu Nadason said rather than people going to loan sharks or unlicensed and illegal moneylenders, which would make their situation worse, allow them to make EPF withdrawals.

“The government must understand that if people need to use the money today, they need it now at the most critical time.

“The unemployment rate, the cost of living, floods, petrol prices rising… are some of the reasons why they need to be allowed to make the withdrawal, so that it would allow them to stabilise their lives,” Marimuthu told The Malaysian Insight.

A number of lawmakers, including former prime minister Najib Razak, opposition leader Anwar Ibrahim and former finance minister Lim Guan Eng have urged the government to allow one last EPF withdrawal.

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

EPF recently announced a dividend of 6.1%, the highest in the last three years.

Given the latest dividend payout, Marimuthu urged the government to allow a withdrawal of up to RM10,000.

“If you ask me, we can’t do much with RM5,000.

“So, allow them to withdraw RM10,000 and I believe those drawing out will be prudent and keep the money for a longer period,” he said.

“Let them withdraw. Yes, it is meant to be used for their old age but if a person can’t put food on their table and buy necessities, what is the purpose of keeping the money until old age?

“The person might die before he gets old enough to withdraw,” he said.

Contributors want to make withdrawals too

EPF members have also joined the chorus in favour of further withdrawal from the fund, saying it is crucial for them to survive.

M. Jeya, a receptionist, said she is still finding it hard to cope financially, as she is currently the sole breadwinner in her family.

She said her husband, who lost his job abroad due to the Covid-19 pandemic, has been in the hospital for almost two months, adding more stress on her.

“My husband has been admitted for almost two months and we are finding it hard to manage financially.

“I have to support my college-going daughter, my elderly mother and my husband who is in hospital.

“With just my income alone, it is tough to manage. So, I would be grateful if the government considers allowing us to withdraw some money from EPF,” the 48-year-old said.

Mohd Shahrul from Pantai Dalam also said that a monthly withdrawal of RM2,000 for five months would help him settle down.

Shahrul, a sales executive, said the withdrawal will help tremendously, with the arrival of a newborn son.

“My wife is a housewife and I’m the only one earning.

“So, besides my basic salary, the extra depends on sales commission and I can’t say sales are very good given that we are still in the epidemic.

“On top of that, we have just blessed with a baby boy and we need to take care of that as well.

“So, even if it is not the entire amount in one go, they can release like RM2,000 monthly for five months. At least something to help us through,” the 33-year-old said.

Shahrul said he has close to RM100,000 in his account and claimed any withdrawal could be recovered later as he is still young and working.

“Yes, the government is concerned about savings for old age but they should also be concerned for now.

“People are struggling. Allow us to withdraw and those who are still working can recover the amount slowly,” he said.

Tharma, 30, wants the government to give contributors the option to make a decision on EPF withdrawal.

“The government should allow people to withdraw as many out there are struggling to make ends meet. It’s up to them if they want to withdraw or not,” he said.

Tharma, who lost his aircraft technician job during the Covid-19 epidemic, said he would be cautious about making withdrawals but did not rule out the possibility of tapping into his retirement funds.

“We need the money when we are old. With the rise in cost of living, we cannot predict how the future will be. So, we need the savings.

“But if needed to, I will withdraw, although not much but some amount, if I really need to,” he said.

Since he was retrenched, Tharma had been freelancing as a photographer. – March 14, 2022.