EPF receives RM40.1b Special Withdrawal requests in just 2 weeks

by NURUL SUHAIDI / pic by MUHD AMIN NAHARUL

THE Employees Provident Fund (EPF) has received 5.3 million applications under the Special Withdrawal facility after the application opening to members on April 1, 2022.

As of 8pm on April 14, 2022, the total number of applications is equivalent to RM40.1 billion.

In a statement, the EPF said the reimbursement will be made in batches. Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the first batch is set to commence today through a single payment.

The EPF revealed that the number of applications received represented 44% out of the 11.95 million members who are eligible to withdraw their savings under the facility.

“Breaking down by income groups, this represented 55% of eligible B40 (bottom 40%) members (those earning less than RM1,700), 59% of M40 (medium 40%) members (RM1,701-RM4,900) and 39% of T20 members (earning above RM4,900).”

It noted that 29% of informal and inactive members also have applied.

In terms of race, the Bumiputera Malays made up a majority of applicants at 63%, followed by the Chinese at 12% and Indians at 7%. The remaining 17% were Bumiputera Sabah and Sarawak, and non-Malaysians.

“The main reasons for applying for the facility, according to member feedback, were a loss in income (24%), assisting impacted spouses or family members (23%) and increasing sources of income (14%),” it said in a statement.

Meanwhile, based on data, the proceeds will be used to support daily or monthly-required expenditure (40%), pay off outstanding debts (26%), build an emergency fund (8%) and help affected family members (7%).

The remaining 19% noted will be used for non-essential spending such as investing and paying for children’s education.

The EPF has put in place measures to protect irresponsible third parties or scammers from submitting false claims and risking members’ savings.

In that regard, 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.

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

The closing date for the Special Withdrawal facility is on April 30 and members can continue to apply through the dedicated portal at pengeluarankhas.kwsp.gov.my.