“Allow one-off EPF withdrawals for contributors”

Letter to editor

THE Global Human Rights Federation (GHRF) and Pertubuhan Gabungan Inovasi Rakyat Malaysia (PGIRM) have signed a memorandum of understanding (MOU) to pledge for a one-off Employees Provident Fund (EPF) withdrawals for contributors and matters pertaining to human rights.

GHRF and PGIRM have received many phone calls, WhatsApp messages, and e-mails from EPF contributors pleading for withdrawal from Account 1 to be released by the government.

More than 40 affected contributors attended and expressed their grievances and sufferings since the pandemic as well as their struggles to make ends meet. The issues raised are as follows:

  • Job loss and challenges in finding a new job due to age factor, particularly for those aged 40 and up;
  • Those with jobs have to bear heavy loans with high interest rates and a monthly salary that is barely enough to cover loan payments;
  • Increased monthly expenses as a result of rises in price of basic food/other necessities and escalation in the cost of living;
  • Marriages break down due to financial crises and difficulties with children being emotionally affected and their studies disrupted;
  • High cost to bear for children’s education such as tuition, college fees and stationery;
  • Needing capital to venture into opening small and medium businesses to earn a living;
  • Since the COVID-19 pandemic, gold and jewelleries have been pawned and cannot be recovered;
  • Due to pending monthly arrears, homes are being auctioned off; and
  • Cars are being repossessed.

However, all of these EPF contributors have more than enough money in their Account 1 to alleviate the severe financial burden that they are currently facing.

By allowing a withdrawal would help them have a fresh start and embark on a new path in life. What is the point of waiting until their retirement age of 55 when they need instant cash to be relieved of their hefty financial debts now?

Hence, we feel for them and their plead for their EPF withdrawal to be allowed so that they and their families could survive without going into further financial complications.

The government must realise that even though there is a process of economic recovery now from the pandemic, there are many Malaysians out there who have been badly affected by personal financial crisis stemming from the pandemic. These people are struggling with their lives as exemplified by the 40 who attended our meeting as well as the many more who have interacted with us.

To re-cap, reported suicidal cases surged from 631 in 2020 to 1,142 in 2021 mainly due to financial stress and depression during the pandemic.

Recently, I noticed that many third-party financial providers are promoting financial aid to EPF contributors on Facebook. Many are requesting assistance in the comment section, and here we have no clue how reliable the schemes are or if there is a catch behind their offerings.

Due to desperation, we do not want people to be lured into scams or loan sharks just to ease their burdens. There were 1,784 cases of Ah Long menace in January 2022, according to the Bukit Aman Commercial Crime Investigation Department.

We have a total of 15.5 million EPF account holders in Malaysia. It’s pointless for the Prime Minister to say that the EPF Account 1 contribution is only meant for retirement age when one truly wonders what kind of retirement we are talking about when many of the EPF contributors are finding themselves in dire straits.

By the way, the majority of Malaysians these days work until they are 70 or older; nobody retires at 55 as they need to earn an income to fulfill their commitments.

The unity government must seriously consider allowing EPF withdrawal without any hesitation or further delays.

This EPF withdrawal might not be a permanent solution, but it will definitely help lift the financial hardship of many Malaysians, especially those from the B40 and M40 groups. — Feb 5, 2023

 

Shashi Kumar is president of the Global Human Rights Federation (GHRF), a Kuala Lumpur-based NGO fighting against racism, supremacist policies, religious persecution, double standard law enforcement, discrimination and oppression of minority groups.

The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.

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