PUTRAJAYA: A total of 59,230 contributors have applied for the Employees Provident Fund's (EPF) Account 2 Support Facility (FSA2) as of yesterday since it opened on April 7, with only 27,705 eligible, said Deputy Finance Minister Datuk Seri Ahmad Maslan.
"Those who are not eligible are because they are under 40 years old. Only those aged 40 and above are eligible for this facility," he told the media after visiting the Accountant-General's Department here today.
FSA2 aims to help EPF members obtain personal financing from banking institutions.
So far, two banks are participating in it — MBSB Bank Bhd and Bank Simpanan Nasional.
FSA2 involves a maximum financing of RM50,000 (subject to an EPF contributor's Account 2 balance) and a repayment period of up to 10 years.
Among the stipulated conditions is that the applicant must have a minimum amount of RM3,000 in his Account 2.
Ahmad said EPF withdrawals were allowed only for the purposes of housing, education, health, certain protection plans, such as chronic illness, and a maximum of RM3,000 to cover haj cost.
"We are not saying there will be no withdrawal from EPF at all. The EPF funds can still be withdrawn from Account 2 for five purposes. Withdrawing from Account 1 is not allowed because it is specifically for retirement purposes," he said.
Titiwangsa member of parliament Datuk Seri Johari Abdul Ghani was previously reported to have said that it was easier to allow people to withdraw from their EPF savings than to use them as collateral for loan applications.
Meanwhile, Ahmad said that as of Dec 31, the total assets and liabilities that have been accounted for in the Federal Government's Integrated Financial Management and Accounting System amounted to RM2.85 trillion.
He said Accountant-General's Department was researching and looking for federal government assets in the form of investments, property and various other forms.
"This year we may get another RM30 billion in assets to be accounted for," he said, a majority of the assets being in the country. --Bernama