EPF receives 5.3m applications worth RM40.1b for special withdrawal as at 8pm April 14

On March 2, EPF announced that a whopping 48% of its members have less than RM10,000 in their accounts, accounting for the RM101b pandemic-related i-Lestari, i-Sinar and i-Citra withdrawals (Pic TMRpic)

by BERNAMA / pic by MUHD AMIN NAHARUL

KUALA LUMPUR • The Employees Provident Fund (EPF) has received a total of 5.3 million applications worth RM40.1 billion under the Special Withdrawal facility as at 8 pm April 14.

The application is opened to members on April 1.

In a statement today, the pension fund said payments would be made in batches with the first batch set to commence on April 20, 2022.

“The number of applications received represented 44 per cent out of the 11.95 million members who were eligible to withdraw their savings under the facility.

“Breaking down by wage groups, this represented 55 per cent of eligible B40 members (those earning less than RM1,700), 59 per cent of M40 members (RM1,701 – RM4,900), and 39 per cent of T20 members (earning above RM4,900),” it said.

It said a further 29 per cent of informal and inactive members also applied.

The EPF said Bumiputera Malays made up the bulk of applicants at 63 per cent, followed by the Chinese (12 per cent) and Indians (seven per cent) while the remaining 17 per cent were Bumiputera Sabah and Sarawak and non-Malaysians.

“Based on feedback from members applying for the facility, the three top reasons for applying included reduction in income/wage (24 per cent), assist affected spouse/family members (23 per cent) and increase sources of income (14 per cent),” it said.

“While the utilisation of proceeds will be for the purpose of supplementing daily/monthly essential expenditure (40 per cent), settling outstanding debts (26 per cent), increasing emergency fund (eight per cent) and assisting affected family members (seven per cent) with the remaining 19 per cent for other purposes such as paying for children’s education, non-essential expenditure and investment,” it said.

The EPF said it has put in place measures to prevent irresponsible third parties or scammers from making fake submissions and posing a danger to members’ savings.

“Members are strongly advised not to share photos or documents of their Special Withdrawal submissions on social media and to exercise caution when withdrawing their money to avoid falling victim to potential scams and fraudsters.

“The EPF reminds members to consider their long-term income security and only withdraw their savings if it is absolutely necessary and utilise the money wisely and for appropriate purposes,” it added.

The Special Withdrawal facility will be closed on April 30, 2022.