KUCHING, March 16 — The additional withdrawal of up to RM10,000 from the Employees Provident Fund (EPF) for its members is a timely solution for families experiencing tight financial situations to meet their basic needs during this hard time, said Datuk Sim Kiang Chiok.

The Sarawak United Peoples’ Party (SUPP) Stakan branch chairman said the move will not affect the fiscal position of the federal government.

"The positive sides are that members who really need this fund will be able to settle their needs in this Covid-19 pandemic affected economy and job market,” said Sim in a statement.

He said the move will also address the dilemma when cash-tight citizens see that it would be pointless to only wait until retirement to be able to access the much needed cash than to meet the immediate needs at hand right now.

"With such high uncertainty in our world due to Covid-19 pandemic, the Russia/Ukraine war, the cost of living is set to rise due to inflation and rising price of oil and gas, lower purchasing power of our Ringgit, ending of automatic bank loan repayment moratorium.

"Allowing this EPF withdrawal can be a timely solution for families to tie in for their basic needs in this unprecedented time,” he said.

However, Sim warned that further withdrawal of EPF savings would affect the retirement needs of an ordinary working Malaysian.

"The savings of the withdrawing members might not be sufficient for their retirement needs. There are several proposals by Members of Parliament to help, by assisting EPF in increasing earnings by awarding high yield government projects to it.”

With the high dividend declared by EPF over the years, Sim added that it would be wise to keep the savings with the retirement fund and early withdrawals should only be the last resort.

Sim said it was reported that EPF members had been able to access up to RM71,00 through previous EPF withdrawal programmes and about 48 per cent of them under the age of 55 had less than RM10,000 in their retirement fund. — Borneo Post Online