THE government will not be populist in allowing Employees Provident Fund contributors another round of withdrawals, said Economy Minister Rafizi Ramli. 

He said withdrawing from the fund would drastically reduce its size and severely impact its ability and flexibility, hence limiting its investment option strategies and eventually impacting dividends paid to contributors. 

“If we are going through tough market conditions in 2023 and 2024, we need a fund that is equally resilient and robust so we can protect the majority of EPF depositors, who are basically small depositors,” he told a media conference in Kuala Selangor today.

“If the government chooses a populist approach because we want to go for the state elections and allows withdrawals, that will severely impact the EPF’s ability to manage its fund,” he said. 

He said for the good of the nation, the government will not resort to those populist measures despite facing immense pressure from a certain group. 

“We have gone through administrative phases where decisions were made in order to get responses and likes on TikTok and Facebook, for which we are feeling the effects now,” he said. 

He said he hopes in five years, the people will understand the government’s decision and be able to appreciate it. – Bernama, March 21, 2023.