The method of allowing contributors to use the funds in the Employees Provident Fund (EPF) as collateral for bank loans does not violate the EPF Act, said Prime Minister Datuk Seri, Anwar Ibrahim.
He said the matter had been discussed with the EPF and there were no obstacles to implementing it.
Anwar, who is also Finance Minister, said that the method is to help certain cases.
“…but there are urgent cases, for example, contributors have savings but can’t afford to pay their children’s education fees abroad, we give consideration to these cases,” he said
The Prime Minister had mentioned during his speech in parliament Anwar that the government would introduce a method that would allow contributors who are in dire straits to take up loans from a bank with collateral from their EPF.
He has basically responded to requests including from former Prime Minister Datuk Seri Ismail Sabri who has called for the government to allow EPF members to withdraw their savings due to the difficult climate of high cost of living and rising food prices.
