PUTRAJAYA: All quarters, including those affected by the Covid-19 pandemic and natural disasters such as floods, should not look at the Employees Provident Fund (EPF) as the financial solution to the challenges they face.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz explained that when the Government allowed three special EPF withdrawals under the i-Lestari, i-Sinar and i-Citra schemes, it was only a short-term and temporary measure due to the Covid-19 pandemic which was unprecedented and had impacted the whole world.
He said at the moment, there were quarters demanding that more EPF withdrawals be allowed, as some see the issue as an easy political mileage.
However, he said, such demands were not made responsibly and were done recklessly without careful analysis and thorough calculations.
"We cannot allow EPF withdrawals for all disasters. Almost every year the country has been struck by floods. There may be other disasters such as landslides, fires and so on.
"If for every disaster we to allow withdrawal of the EPF savings, then its aim as an old age savings scheme will not be achieved.
"The fact is that almost 50 per cent or about 6 million (EPF) contributors have a contribution balance of less than RM10,000," he said in a Facebook post.
Tengku Zafrul said, currently, there are EPF members who have made withdrawals of up to RM71,000 through the three special withdrawal schemes with a total amount of RM101 billion involved.
He said contributors would not benefit from an additional withdrawal of i-Citra of up to RM10,000, as urged by some quarters.
"74 per cent of this group are Bumiputeras.
"More worryingly, 79 per cent of those with savings of less than RM10,000 are also Bumiputeras.
"Believe in the policymakers, the government must be responsible in ensuring the welfare, not only in the short term but also the long-term, and wellbeing of our children and grandchildren," he said.
In helping victims of disasters, including the recent floods, Tengku Zafrul said, in general, the government has extended various assistance to help the people.
He said among others, to help the cash flow of the B40 and M40 groups, the government has channelled assistance amounting to RM10 billion through Bantuan Prihatin Rakyat (BPR), Covid-19 Special Assistance (BKC) and also Income Loss Assistance (BKP) which benefited some 11 million recipients.
Apart from that, he said, the Government also channelled cash assistance which was increased to RM1,000 to the victims of the recent floods as well as various other types of assistance such as assistance to buy electrical appliances, assistance to repair vehicles, discounts of up to 50 per cent on car spare parts, financing with zero per cent moratorium rate and others.
"The purpose of the EPF is none other than to prepare for one's old age. When the energy to work begins to diminish.
"We need to know that it is very important for our people to be prepared for old age because it will come soon. In 2030, Malaysia is expected to achieve its status as an ageing country.
"This means that in just eight years, retirees and the elderly will make up 15 per cent or more than 5.3 million of the country's population. Eight years is not that long. This means they will need more savings to finance their living after retirement," he said.