The Malaysian Insight

THE Employees Provident Fund i-Sinar withdrawal scheme is now open to all members whose incomes have been affected by the Covid-19 pandemic, said Tengku Zafrul Abdul Aziz.

“Eight million members can now withdraw up to RM10,000 from their EPF account 1,” said the finance minister during his winding-up debate on Budget 2021 in the Dewan Rakyat today.

He said Putrajaya has heard the grouses of the people and various lawmakers, and decided to allow EPF members to withdraw from their accounts.

“This facility is now open to all EPF members whose incomes have been affected regardless of whether they were retrenched or had their salaries cut,” said Tengku Zafrul.

On November 6, the government said that Malaysians affected by the Covid-19 pandemic could withdraw up to RM6,000 from their EPF accounts at RM500 per month for 12 months.

But MPs on both sides of the aisle said the measure was not enough to help people affected by the economic impact of Covid-19, and called on the government to allow the withdrawal in one lump sum instead of being staggered.

Tengku Zafrul said allowing a higher level of withdrawal from EPF was about “finding the right balance between fulfilling different needs of members”.

“The first is to allow withdrawal to help with current needs and the other is to ensure sufficient retirement funds,” said the minister.

On November 6, said the minister, EPF had already allowed more than 600,000 members to withdraw up to RM6,000 from they account 1.

“This was later expanded to cover two million members who can now withdraw RM9,000 to RM60,000 from account 1. 

“After listening to the various sides, the government is pleased to announce that the i-Sinar programme will now cover all members who suffered income losses during the pandemic. Those who could only withdraw up to RM9,000 are now allowed to withdraw RM10,000,” said Tengku Zafrul.

He said the new initiative will cover all workers, regardless of whether they were formal employees or self-employed.

“Just provide proof that you have lost your job, suffered a pay cut or slash in overtime or allowances.” – November 26, 2020.