PM Anwar reiterates no more EPF withdrawals
Astro Awani
May 8, 2023 13:57 MYT
May 8, 2023 13:57 MYT
"I understand the pressure, but forcing the withdrawal of the EPF is not the way out," says Prime Minister Datuk Seri Anwar Ibrahim when officiating EPF's Kwasa Damansara branch in Kuala Lumpur today. - ASTRO AWANI/SHAHIR OMAR
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has reiterated that there will be no more withdrawals from the Employees Provident Fund (EPF).
Anwar, who is also Finance Minister, said that while it was an unpopular decision, it was necessary to secure the future of contributors.
"I understand the pressure, but forcing the withdrawal of the EPF is not the way out.
"I believe this issue will be politicised by the opposition party in the upcoming state elections, but I am not worried," he said in his speech when officiating EPF's Kwasa Damansara branch in Kuala Lumpur today.
Anwar's proposal to halt withdrawals from the EPF is not new. He has previously warned Malaysians of the potential long-term consequences of withdrawing their savings from the pension fund.
According to him, the previous three opportunities for EPF withdrawals were reasonable because the situation was different at the height of COVID-19 and many Malaysians were in dire straits.
In addition to his call for no further withdrawals, Anwar has also proposed that the EPF increase its domestic investments to 70% of its total investments, up from 64% last year.
Anwar also suggested that the fund should re-evaluate its direction to ensure that its investments are in line with the government's priorities, including encouraging youth participation, improving food security and supporting start-ups.
He highlighted that while Malaysia's productivity has increased, wages have not risen proportionately, resulting in a widening income gap.
Anwar added that if the government can identify new investment opportunities, it can increase revenues, which will ultimately benefit the people.