PUTRAJAYA should come up with alternative government financial support schemes to support EPF contributors who are still working, the Malaysian Employers Federation (MEF) said.

Its president Syed Hussain Syed Husman said Putrajaya needs to utilise all its financial resources to come up with other government schemes to support those who are working and need financial backing. 

“Today many of them are still working and they enjoy many benefits from employment. However, when they retire all these employment benefits will cease to apply. For most EPF contributors, upon retirement, their only means is the EPF funds saved.”

“To allow withdrawals of this safety net is not a smart idea. EPF alone cannot guarantee such benefits to its citizens as the cost is getting too high. MEF is happy that the unity government is looking into this and they understand what is practical to be implemented for sustainability of life upon retirement,” said Hussain.

Yesterday, Anwar called on Malaysians to consider all options available to them before asking to be allowed another withdrawal from their EPF savings.

Speaking to reporters after an event at the Universiti Selangor Bestari Jaya campus the prime minister said his government was particularly concerned about Malaysians approaching retirement who were left with meagre savings in the fund.

“If we allow more withdrawals when the people only have RM5,000 or RM10,000 left in their savings, what will happen when they retire (for example) four years from now?”

Anwar called for the press to give the issue fair coverage.

“I know (the argument). It is their money and they should be entitled to withdraw it, but for those with only RM3,000 left who are due to retire in five years’ time, what becomes of their children?”

Hussain lauded Anwar’s decision to not allow further withdrawal of EPF savings adding that MEF appreciates the bold decision and the political will of the unity government for not allowing the withdrawal.

“The decision will go a long way to ensure the long-term sustainability of EPF savings for old age. It is targeted that EPF contributors should have a minimum level of RM480,000 in savings on attaining the age of retirement. With this minimum saving, at the age of retirement the retiree will be assured of a minimum of RM 2,666 per month to use every month for five years.”

“The government must think of other schemes to assist them rather than EPF savings meant for old age requirements. This responsibility cannot be passed to individual employees. As citizens, during the prime of their life and career they have contributed a lot to the nation. It’s the nation’s duty to take care of them when they retire,” said Hussain. –  February 10, 2023.