MEF calls for policies on EPF withdrawals to be reviewed

KUALA LUMPUR - Malaysian Employers Federation (MEF) is calling for the policies on Employees Provident Fund (EPF) withdrawals to be reviewed, taking into account Malaysia’s current minimum retirement age of 60 years.

In a statement today, MEF president Datuk Dr Syed Hussain Syed Husman said the withdrawal of one-third of EPF savings for members who had reached 50 years old and full withdrawal at age 55 was introduced when the retirement age was 55.

"In July 2013, the government raised the retirement age to 60 years but the withdrawal policy for ages 50 and 55 years remained. Such policy lead to claims that the EPF contributors do not have enough retirement savings when they retire at 60,” he added.

He noted that Covid-19-related programmes have affected EPF members’ savings by around RM145 billion.

"It is critical for EPF members to rebuild their retirement savings and MEF fully supports the government’s decision not to allow further withdrawal from the EPF savings which are meant for old age,” he said.

However, Syed Hussain said that the MEF is confident that there is no cash crunch crisis in the EPF as the retirement fund remained financially strong despite four special Covid-19 pandemic-related withdrawals.

He added that notwithstanding the weak performance of equity markets in 2022, the EPF’s diversification strategies across different sectors and geographies have been effective in ensuring reasonable returns on its investments. - BERNAMA