THE median savings of Employees Provident Fund (EPF) members have gone down by half effectively, barring any more withdrawals, Ahmad Maslan told the Dewan Rakyat today.

The deputy finance minister said RM145 billion was withdrawn from EPF by 8.1 million members during the Covid-19 pandemic. 

He said the median savings for those who had withdrawn from their EPF accounts have dropped by 50%. 

“Median savings of EPF members from 2016 were RM16,600, and have dropped by 50% to RM8,100 in 2022,” he said. 

Ahmad said the figures were more concerning when the savings of the Malays and other Bumiputera groups were taken into account.

HE said the median savings of the seven million Malay contributors dropped from RM16,900 in April 2020 to just RM5,500.

“So how can we allow for more withdrawals? That’s the reason (for not allowing withdrawals) and, moreover, the Covid-19 pandemic is over,” he said.

Last week, the government said it will not allow more special EPF withdrawals as a measure for the people to overcome their financial difficulties. 

Prime Minister Anwar Ibrahim said more withdrawals will affect contributors who are retiring soon. 

He said many EPF contributors have little EPF savings to see them through their old age.

“I could just let them withdraw their (EPF savings) since it’s their money anyway. But for those who are only left with let’s say, RM3,000, if they withdraw RM3,000 now, what will happen to their families later?” he said. 

“Those who have a lot may not have a problem, but what about those who don’t? Some are going to retire in two or three years’ time. 

“So we are trying to find a way to help ease their burden without affecting them when they retire.”

Under the past two administrations, four tranches of EPF withdrawals were allowed in two years to tide Malaysians over the pandemic.

Contributors were allowed to withdraw RM10,000 more last year, following the i-Lestari and i-Sinar schemes in 2020 and i-Citra in July 2021. – February 16, 2023.