During the Covid-19 outbreak, 8.1 million members withdrew a total of RM145 billion from the Employees Provident Fund (EPF), according to Deputy Finance Minister Datuk Seri Ahmad Maslan.
“That is why, in the foreseeable future, the government has no intentions to approve any additional EPF withdrawals,” Ahmad said at a press conference in Parliament on Thursday (Feb 16).
The figure includes RM20.8 billion paid by 5.3 million members through the i-Lestari programme, RM58.7 billion paid by 6.6 million members through i-Sinar, RM21.4 billion paid by 5.2 million members through i-Citra, and RM44.6 billion paid by 6.6 million members through an EPF special withdrawal programme last year.
According to Ahmad, the median savings in EPF accounts for all Malaysians was RM8,100 last year, a 50% decline from RM16,600 in 2019.
Savings of less than RM10,000 are held by 6.7 million members, or 51.5 percent of the 13.1 million EPF members.
There would be 4.7 million members with less than RM10,000 in savings by 2020.
“B40 and M40 members are the most affected, resulting in a growing gap with the T20 group,” Ahmad explained.
Ahmad also stated that the savings disparity across races is expanding, with bumiputra under 55-years-old saving RM4,900, which is three times less than the RM15,500 median savings in April 2020.
“The drop in median savings among Malays was the greatest, from RM16,900 in April 2020 to RM5,500 in 2022,” Ahmad said.
According to Ahmad, there are several recommendations on raising the voluntary contributions to EPF, which are now set at RM60,000 per year.
“Further announcements on that will be made when the Budget 2023 is tabled on February 24,” Ahmad added.
On February 15, Perikatan Nasional chairman Tan Sri Muhyiddin Yassin encouraged the government to explore providing one-time targeted EPF withdrawals to people in need.
