EPF: Accessing Account 1 savings should not be the only way to get through difficult times

KUALA LUMPUR (Oct 31): The Employees Provident Fund echoed Prime Minister Tan Sri Muhyiddin Yassin’s sentiment that EPF savings are for the future, and said that larger problems could arise in the future if its members are allowed to access their Account 1 savings to address the challenges they face due to Covid-19.

EPF chief executive officer Tunku Alizakri Alias said Muhyiddin’s reminder is a “hard one to deliver” as people are struggling to balance between surviving today and preparing for tomorrow.

“The pandemic has impacted all of our lives where some of us have even lost our jobs and source of income. We see real distressing cases where Malaysians are struggling daily to put food on the table to feed their families and to keep a roof over their heads,” he said in a statement.

“Accessing their hard-earned savings in Account 1 should not be the only way for our members to get cash in order to get through these very difficult times,” added Alizakri.

He said the government has provided numerous direct financial assistance through PRIHATIN, PRIHATIN SME+, PENJANA, and KITA PRIHATIN, which has amounted to RM55 billion for the B40 and M40, as well as other target groups.

He also pointed out other relief measures, such as access to EPF Account 2 via i-Lestari, with over RM11 billion released to more than 4.7 million members since April.

“Retirement savings are our members’ insurance for their future well-being, and allowing this withdrawal is equivalent to eroding that protection.  

“I urge our members to make an appointment with our Retirement Advisory Service (RAS) officers to help plan their finances, which can take into account all forms of assistance available and tide them through these tough times,” he said.
Earlier today, Muhyiddin noted that some people are seeking to withdraw their savings from their EPF Account 1, which he said is “quite difficult to implement” as the Government has already provided billions in assistance.

“The (EPF) savings are for our old age. If we allow this (withdrawal), the people will face another set of problems,” the Prime Minister said.

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