PKR lawmaker asks for EPF withdrawal limit to be increased to RM120,000

KUALA LUMPUR (Nov 17): The Employees Provident Fund (EPF) could increase the overall withdrawal limit in retirement savings to RM120,000 to help those who have been financially impacted by the Covid-19 pandemic, PKR MP Noor Amin Ahmad suggested today in a Malay Mail report.

He also said that those making such withdrawals can “agree” to receive smaller dividends, the Kangar lawmaker said during his debate on the Bill for Budget 2021.

Noor Amin actually made four proposals for the EPF, reported the news portal.

“First, we should set the ceiling withdrawal at RM12,000 for each contributor at RM50,000, and the overall withdrawal limit to be RM120,000, not RM90,000.”

He added that those with less than RM50,000 in their EPF accounts should be allowed a maximum withdrawal limit of RM12,000, “along with additional injection by the government of RM1,200 per month for six months”.

Noor Amin also suggested that all EPF contributors should be allowed to make pre-retirement withdrawals under the i-Sinar facility, “instead of having a bureaucracy filter out applicants and only allow those who have lost their jobs, are on unpaid leave or with a reduced income”.

“Fourth, no need to repay, but have a mechanism where contributors who want to withdraw the money now agree to receive a lower dividend in the future and this reduced dividend in the future can be deposited as a replacement for the withdrawals until the amount is the same as what was withdrawn,” he went on.

According to a Bernama report yesterday, the EPF said it expects the i-Sinar facility to benefit two million eligible members, with an estimated advance amount of RM14 billion to be made available.

Chief executive officer Tunku Alizakri Raja Muhammad Alias said the EPF has widened the scope of i-Sinar to cover active members who have lost their jobs, or given no-pay leave, or have no other source of income.

Eligible members will have access to 10 per cent of their savings in Account 1 but will have to ensure that they have a minimum balance of RM100 in their account, and the maximum amount allowed to be advanced is RM60,000.

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