KUALA LUMPUR – The Employees Provident Fund (EPF) may provide special consideration for the withdrawal of savings in certain critical cases, even if they fall outside the existing terms and procedures.
However, Prime Minister Datuk Seri Anwar Ibrahim stressed that excessive leniency would not be granted, in line with the principle that EPF was meant for contributors' retirement savings.
He said that allowing overly broad access to EPF withdrawals would only ‘punish’ contributors when they retire.
"There are times when certain exemptions and flexibility are granted... and many special appeal cases receive special consideration, especially in cases of illness and so on.
"But opening the access too widely means we would be punishing them when they grow older and retire.
"The government must strike a balance between addressing urgent issues and ensuring that they are not left struggling in their old age without other means," he said during the Minister's Question Time in the Dewan Rakyat on Tuesday.
He was responding to a question from Nurul Amin Hamid (PN-Padang Terap), who asked whether the government should allow struggling contributors to withdraw their own savings to sustain their livelihoods.
Anwar said that the 6.3 per cent dividend recently announced would help contributors better understand the long-term benefits of keeping their savings in the EPF.
"The EPF has already issued a statement that the majority of contributors, particularly among the Malay community, have very minimal savings," he said.
However, he believes that in specific cases, special consideration could be given.
"So, if there is a specific case, as raised by Padang Terap, I believe the EPF can provide special consideration, just as they are currently doing.
"For instance, in urgent situations, even if they do not meet the current withdrawal criteria," he added.