KUALA LUMPUR: Some 6.1 million Employees Provident Fund (EPF) contributors are now left with savings of less than RM10,000, according to a written reply from Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in Parliament today.
Of this figure, Some 3.6 million have less than RM1,000 in their savings.
Tengku Zafrul said this was based on assessments as of Sept 30, following a total RM101 billion in withdrawals through the i-Lestari, i-Sinar and i-Citra schemes.
He said the depletion of savings among EPF Bumiputera members was even more alarming, as some 4.4 million of them or 54 per cent now have less than RM10,000 and two million or 25 per cent of them have less than RM1,000 in their EPF accounts.
Meanwhile, of the 1.62 million active EPF members aged between 45 and 59 as of Sept 30, it was found that 479,000 of them or 29.6 per cent have savings not exceeding RM50,000.
"It should be stressed that although 70 per cent of active members aged 45 to 59 have over RM50,000 in savings, this is not a comfortable amount for retirement," he said in his written parliamentary reply to a question from Datuk Seri Dr Wan Azizah Wan Ismail (PH-Pandan).
Tengku Zafrul said RM50,000 was only sufficient for a monthly RM1,000 expenditure for four years, or a paltry RM200 per month for 20 years.
He said it would be challenging to build up sufficient savings as this age group has less than 15 years before reaching retirement age.
While the three withdrawal initiatives have helped ease the burden of members during the Covid-19 pandemic, it has indirectly left them vulnerable without retirement protection, he said.
"For example, 73 per cent or almost three quarter of EPF members are in a dire situation where their funds are insufficient to retire above the poverty line.
"EPF has estimated that members need to work between four and six additional years to rebuild their savings that have been withdrawn during the pandemic."
This, he said, would cause a significant drop in the percentage of members that have the basic savings of RM240,000 at 55, from 36 per cent in 2020 to about 27 per cent by the end of this year.
He said the government, together with EPF, were carrying out efforts to help members rebuild their savings for their retirement.
He said the government is steadfast in its stance to strengthen the social protection agenda for the Malaysian Family. This includes the i-Saraaan incentive and Kasih Suri Keluarga Malaysia.
"In addition, the Social Protection Council Malaysia (MySPC), chaired by the prime minister is currently studying fundamental reforms of the country's social protection system.
"The efforts would help towards addressing any weaknesses of the system, to ensure that the vulnerable have the access to the minimum standard of living even in an unpredictable environment."