Prime Minister Datuk Seri Anwar Ibrahim said the proposal to allow contributors to the Employees’ Provident Fund (EPF) to make bank loans with the security of their contributions does not conflict with Seskyen 51, the EPF Act.
He who is also the Minister of Finance said the government has referred to the EPF and the Attorney General to get legal advice on the matter.
According to him, the interest of borrowers is also preserved through the method in question when dividends are still continued in the EPF even though collateral is given.
“For example, RM50,000 as a loan, but the dividend will be given in full according to the original group. So it is not cut (dividend),” he said during the Minister’s Question Time (MQT) in the Dewan Rakyat, today.
He answered an additional question from Datuk Muslimin Yahaya (PN-Sungai Besar) on whether the collateral method violates the EPF Act, and whether the Prime Minister sought the advice of the Attorney General on the matter.
