THE government is proposing to introduce a scheme that allows Employees Provident Fund (EPF) contributors to apply for bank loans by using their retirement funds as collateral.

Prime Minister Anwar Ibrahim said, however, this facility would only be for those who need money desperately.

“In principle, I do not agree with allowing special withdrawals from the people’s retirement fund,” he said when winding up the debate on the Supply Bill 2023 in the Dewan Rakyat today.

“However, I will ensure that EPF gives space to hard-pressed contributors with savings to borrow from banks, by using their EPF money as collateral.”

Anwar said this is the best way to help contributors in the present circumstances as many countries that had given relaxations such as withdrawals from retirement funds had cancelled such facilities.

The prime minister also criticised opposition members who portrayed the unity government as oppressive in their debates.

He said grants and financial aid extended to states, including those administered by the opposition, have increased this year compared to previous years.

“Kelantan has been allocated RM351.5 million; Terengganu, RM411.1 million; and Perlis, RM154 million. Then, you compare with Sabah and Sarawak,” said Anwar, who is also finance minister.

“It’s not fair to compare with Sabah and Sarawak because they came together to be with Malaysia later. Their rural areas are lagging far behind, much worse than poor areas.

“This is not a question of political interests; I am consistent in this matter. If we spend RM10 million, we have to add RM100 million in Sabah and Sarawak.”

The government also provided development allocations totalling RM6.2 billion for Kedah, Kelantan, Terengganu and Perlis this year.

The Supply Bill 2023, the first budget tabled by Anwar’s administration, was then approved at the policy stage after six days of debate from February 27.

On February 24, Anwar unveiled the country’s biggest ever budget of RM388.1 billion, with RM289.1 billion for operating expenditure and RM99 billion for development expenditure, including RM2 billion in contingency reserve. – Bernama, March 9, 2023.