Do not rush to take out EPF savings, cautioned financial expert

SHAH ALAM - An expert has recommended that Employee Provident Fund (EPF) contributors do not hastily withdraw their savings of up to RM10,000 as what was announced by the government.

Financial Expert, Professor Dr Mohamad Fazli Sabri said, contributors should make advance planning on how to utilise the funds before withdrawing their EPF savings.

"As contributors, we must examine this facility in detail whether it's necessary or not.

“Then, we have to plan on what to do with this RM 10,000, for example, some say they want to use it for business. Plan carefully on how we want to spend the money.

“Make a plan and get a budget first. withdraw or make use of it only if you are truly desperate. If possible seek expert advice before withdrawing,” he told Sinar Harian.

Mohamad Fazli said, the incentive would be helpful for people affected by the Covid-19 pandemic.

“There is no denying that many of us have lost job or income and no other resources that can be utilized to meet daily requirements.

“For this group, they are allowed to withdraw EPF money because it would discourage them from borrowing from family members or illegal money lenders.

"However, this resource should not be misused.

"Please use this option if you truly need it. For those who can afford it, don't waste your money on things like stocks and other investments," he said.