Contributors support EPF's move towards monthly withdrawals

07 Jul 2023 11:34am
Image for illustrative purposes only. (Thumbnails: Nurashikin, Lee ching, Nur Raihana, and R Kesavan)
Image for illustrative purposes only. (Thumbnails: Nurashikin, Lee ching, Nur Raihana, and R Kesavan)

SHAH ALAM - The Employees' Provident Fund's (EPF) announcement of considering mandatory periodic or monthly withdrawals for contributors reaching the retirement age of 55 has received positive feedback from contributors.

A survey conducted by Sinar revealed that the majority of contributors agreed with the proposal.

Al-Quran and Fardu Ain Class (Kafa) teacher Nurashikin Mohamad Ngafan, 28, said that EPF contribution is a saving for the future that can be used for daily expenses and in times of emergency.

"Withdraw (money) on a monthly basis is better. At least, there are still some for emergency instead of withdrawing all of it," she said.

Part-time worker Asyraf Farhan Amir, 23, believes that monthly withdrawals reduce the risk of wastage for individuals with poor financial management.

"I think there is a high risk if contributors withdraw a large sum of money in one go, as they might be more inclined to spend it on non-essential items," he said.

Sales executive Tan Lee Ching, 40, views the approach of monthly withdrawals as more efficient than the current one-time withdrawal system.

Agreeing with the positive sentiment, 21-year-old bakery worker Khairul Syahirah Mukhtasham believes that monthly withdrawals would make it easier for contributors to budget their expenses.

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"While it is possible to withdraw the entire savings, debts or loans should be prioritised to avoid squandering the money," he explained.

Manwhile, Nurwahid Apendi, a 27-year-old technician, believes that one-time withdrawal is preferable as it allows contributors to explore various investment platforms and utilise the money for business capital or purchasing a house.

"If withdrawn all at once, it can be used as capital for business ventures or property investments. It is also concerning that if a person passes away, the money will go unused," he said.

Project supervisor Lukmanul Hakim Abdul Halim, 25, suggests that fully withdrawn funds can be used for personal needs or as capital for home appliances.

On the risk of falling victim to fraud schemes, Lukmanul argues that precautions can be taken to avoid such issues.

Private servant R Kesavan, 22, admitted wanting to use his EPF to support himself when he retired.

"While I am still working, I don't get much time off. Retirement is the time to enjoy life and spend quality time with family by going on vacations using the money," he added.