PLEASE help explain the process more easily.
1. For those who have less than RM90,000 savings, are eligible to withdraw a maximum of RM9,000 and must have a minimum balance of RM100 after withdrawal.
2. For those who have savings of more than RM90,000, can withdraw 10% from savings; maximum RM60,000.
3. Low and medium income segments:
– If you save RM1,000, you can withdraw only RM900
– If the deposit is RM5,000, you can withdraw RM4,900 (must leave the remaining RM100)
– If the savings are RM50,000, you can withdraw RM9,000 (because the maximum withdrawal is RM9,000)
4. Previous T20 /high income segment:
– If the savings are RM200,000, you can withdraw up to RM20,000 (because of the 10% limit)
– If the savings are RM800,000, you can withdraw RM60,000 (because the maximum withdrawal is RM60,000)
– Not a one-off. Periodically for 6 months.
– Can apply starting next month and the amount will go into the bank account at the end of January 2021.
C) Eligibility requirements
Those who lose their jobs and those instructed to leave without pay or no income.
D) Implications for those who make withdrawals
No need to pay more later. Only if previously 70% contribution to Account 1 and 30% to Account 2, after this 100% to Account 1 until the savings return to the original.
For advice on how to manage it and the amount that should be issued according to their respective cases to maintain survival during this crisis and during retirement, can contact the EPF Advisory Service Officer or AKPK (if desired)
E) Implications to the Government
There are no financial implications for the Government. The EPF’s investment (and contributor dividends) may be affected but perhaps that is not the priority of the people today.
More importantly, depending on their respective savings (32% of contributors have savings amount below RM1,000, 42% contributors less than RM5,000), this facility may still not be enough for the most at risk.
So in addition to these “buoys”, the government needs to ensure that the MySTEP and JanaKerja guarantees presented in the 2021 Budget are carried out immediately to reduce the unemployment rate and increase the income of the people – notably among young people.
The implementation of cash assistance such as Caring and so on must also be ensured to run smoothly and promptly. The amount of assistance should also be checked from time to time after a few months.
Do not use this facility as an “excuse” or “distraction” not to consider other more comprehensive efforts.
Umno Information Chief