Five reasons why govt allows EPF special withdrawal

SHAH ALAM - Economic experts have laid out five main reasons why the government finally allowed the special withdrawal of RM10,000 from the Employees Provident Fund (EPF).

According to Universiti Sultan Zainal Abidin (UniSZA)'s Faculty of Business and Management's dean Associate Professor Dr Ahmad Azrin Adnan, one of the factors was that the government was concerned about the difficulties faced by the people.

He said the country had just went through a hard time after being hit by massive floods apart from the Covid-19 pandemic.

“Therefore, people are in need of cash assistance especially to replace the things in the house that were damaged due to floods,” he said.

The second reason according to Universiti Tun Abdul Razak (UniRazak) economist Professor Emeritus Dr Barjoyai Bardai was because the amendment to the law in 2020, allowed for withdrawals to be made from EPF during the pandemic.

He said if the special withdrawal was not allowed and the matter was challenged in court, the government would be the losing party.

"Therefore, the Prime Minister made the right decision besides reminding contributors to only make withdrawals if the situation is really urgent,” he said adding that the third factor was to help boost the country’s economy.

Meanwhile i-Cats University College, Kuching vice chancellor Professor Datuk Dr Shazali Abu Mansor said the forth reason was because the Prime Minister has considered the opinions and suggestions of political leaders, particularly from Umno.

“Political leaders might have urged for a special withdrawal (scheme) to be approved for the last time.

"These politicians, when they insisted on something, the major goal will be for the economy, but it would also benefit them," he said.

The fifth reason, he said was because it was believed that the government was already has steps to address the retirement issue of EPF members.