5.1 million bumiputera EPF members have less than RM10,000 in savings

NURUL NABILA AHMAD HALIMY
NURUL NABILA AHMAD HALIMY
22 Jan 2023 08:00am
Photo for illustrative purposes. - Photo by Sinar Harian/Mohd Halim Abdul Wahid
Photo for illustrative purposes. - Photo by Sinar Harian/Mohd Halim Abdul Wahid
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SHAH ALAM - 5.1 million or 76 per cent of bumiputera contributors to the Employees' Provident Fund (EPF) who are under the age of 55 are identified as having savings of less than RM10,000 at the end of 2022.

EPF Chief Strategic Officer Nurhisham Hussein said the median for bumiputeras had fallen from RM6,600 at the end of 2021 to RM4,700 in 2022 where the value was far different from the target of RM240,000 of basic savings.

Nurisham stated EPF could not afford to uphold any additional withdrawals for the necessities of the contributors who required it.

Nurhisham. - Photo by Sinar / Mohd Halim Abdul Wahid.
Nurhisham. - Photo by Sinar / Mohd Halim Abdul Wahid.



He stated any decision to withdraw additional savings after the four previous withdrawal packages is feared to affect the guarantee of the contributors’ income in the future.

“We currently have 18.5 per cent of EPF contributors by age who have achieved the basic savings of RM240,000.

“Even though the EPF recognises that some contributors continue to be affected, EPF was entrusted to protect their members’ savings for their retirement.

“EPF at this time is focused on the efforts of rebuilding the savings of members in line with the economy reopening (post Covid-19),” he said to Sinar

Nurhisham said the number of contributors under 55 with the savings of less than RM10,000 increased by 9.7 per cent compared to December 2021.

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“6.7 million contributors under 55 had savings less than RM10,000 as of December 2022.

“The total contributors under 55 with savings less than RM10,000 have increased to 591,000 members compared to December 2021,” he said.

EPF previously revealed 6.1 million members had less than RM10,000 in their savings account in October 2021.

Of the total, 3.6 million had savings of less than RM1,000 making this group more vulnerable without proper retirement protection.

Nurhisham stated four withdrawals previously done were i-Lestari, i-Sinar, i-Citra and the Special Withdrawal of RM10,000 totaling RM145 billion for the purpose of supporting the members during the temporary closure of the economy throughout the Covid-19 Movement Control Order (MCO).

He said with the economy reopening last year, the participation of labour has ncreased to 69.8 per cent which was the highest since 2010.

“The unemployment rate decreased to 3.6 per cent showing the job market is on a different track and headed towards economic recovery.

Nurhisham stated EPF urges its members to contribute voluntarily to rebuild their savings that have decreased to ensure a better future.