Budget 2021: People squeezed by COVID-19, give EPF withdrawal flexibility - Anwar

KUALA LUMPUR: People who are really desperate should be allowed to make withdrawals from the Employees Provident Fund (EPF) because that is their right, said Opposition Leader Datuk Seri Anwar Ibrahim.

He said, in principle, he himself did not quite agree because the money is for the future.

But, the Port Dickson MP said the people should be given flexibility if they are really squeezed by the effects of the COVID-19 pandemic in the country.

“The Prime Minister (Tan Sri Muhyiddin Yassin) has mentioned, if it is up to him, he does not agree but has to because of the people's insistence.

“The Prime Minister does not understand, the people chose to withdraw the EPF because they had to. I understand if you ask me, I do not agree because in principle, the EPF money is for their retirement. But if they are desperate because of hardship, let them withdraw their own right,” he added.

Anwar, who is also Pakatan Harapan chairman, said this while debating the Supply (Budget) Bill 2021 in the Dewan Rakyat today.

Last Friday, Finance Minister Tengku Datuk Seri Mohd Zafrul Tengku Abdul Aziz when presenting the Budget said, the government has agreed to allow the withdrawal of EPF Account 1 savings as a targeted measure starting next year.

He said the withdrawal was specifically to help members who lost their jobs and was expected to ease the financial burden of 600,000 affected members.

Commenting further, Anwar said, he suggested that higher withdrawal limits be allowed, as it is unreasonable for some cases where a family head with five to six children, can only withdraw RM500 a month.

Apart from that, he also suggested that the government consider issuing bonds or sukuk with an estimated value of RM4 billion so that these funds can also be given partly to EPF contributors and truly desperate Malaysians.

He added that the issuance of sukuk is expected to only increase the government spending deficit by only 0.3 per cent.