KUALA LUMPUR: The Employees Provident Fund (EPF) would not be affected if calls by contributors to withdraw part of their savings are heeded, as millions of ringgit are channelled into the fund every month.
Two non-governmental organisations, Persatuan Penyelesaian Pengguna dan Peminjam Malaysia (4PM) and Pertubuhan Aktivis Rakyat Malaysia (Prorakyat), believe they have solid reasons for urging the government to allow withdrawals this time.
EPF recently said it had missed out on opportunities to expand its investment as a result of the RM145 billion in withdrawals by 8.1 million members taken out in four phases during the Covid-19 pandemic, namely i-Lestari, i-Sinar, i-Citra and a Special Withdrawal.
4PM president, Rosland Mohd Arif, said a withdrawal should be allowed this time as the savings belonged to the contributors, who are aware of the implications of doing so.
He said the economic hardship meant that contributors may not even be able to enjoy the money in retirement, as many are directly affected now, resulting in bankruptcy and even suicide.
"When the EPF said RM145 billion had been withdrawn during the pandemic, to us it's just an number. The country still has money, staff are still receiving their wages.
"Why is EPF making it difficult to withdraw the money since contributors are still depositing into the fund. Why do they have to question the issue (of limited funds) when the people truly need it now," he told Berita Harian.
BH today quoted EPF chief strategy officer Nurhisham Hussein as saying that the pension fund has missed an opportunity to bolster its investment activities following the combined RM145 billion of withdrawals by its members during the Covid-19 pandemic.
Nurhisham said while the disbursement helped its members eased their financial burden, it had a significant impact on the investment portfolio of the retirement fund manager.
He however said it did not have a significant impact on the investment portfolio as its performance and dividends were largely influenced by global and domestic market developments.
Several quarters have since urged the government to allow a one-off withdrawal from EPF accounts from RM10,000 to RM30,000 to help ease cost of living woes.
Rosland said EPF's explanation was disappointing.
"EPF doesn't appear to see the reality facing the people and are not placing themselves in the people's shoes. The people are suffering with no food, loss of jobs.
"Furthermore, this isn't the government's money. We may not even make it to old age to use this money as we may die before then due to other factors.
"There are also many other funds which could be liquidated. Countries like the United Kingdom and Australia are able to help the people deal with cost of living issues," he said.
Meanwhile. Prorakyat president, Khairul Anuar Othman, hoped that EPF would review the needs of its contributors following the pandemic.
"The majority of those affected are between 30 and 50. They are facing difficulties such as age, chronic illnesses, cost of living in the city as well as debts.
"They're in fact piling on even more debt and as such, need to be given priority to withdraw between RM10,000 and RM30,000. This is what our recent studies have shown," he said.
He proposed that the authorities use the same conditions and methods used before to facilitate the withdrawals.
"The withdrawal facility should also be extended to those with contributions in Account 1. There's no need for them to wait until they reach 55-years-old.
"In the sake of fairness, this should be opened to all, be they T20, M40 or B40," he said.
He said one-off withdrawals of between RM10,000 and RM30,000 would not impact EPF's investments. He also urged Prime Minister Datuk Seri Anwar Ibrahim to consider the request.
"We hope the unity government will find a formula and the best solution to make this work.
"It is the contributors' wish that these funds can be withdrawn by March latest or before Ramadan and Aidilfitri," he said.