FORMER finance minister II Datuk Seri Johari Abdul Ghani suggested that allowing Employees Provident Fund (EPF) members to withdraw funds from their Account 2 is a better option than using it as collateral for emergency bank loans.
Johari argued that using EPF as collateral would burden contributors with interest payments, and applying for emergency loans would take time before approval from the bank.
Instead, he said it would be better if contributors just withdrew the amount they needed from their EPF funds without any interest.
This was in response to the government’s plan to introduce a method allowing contributors who are in dire straits to take up loans from a bank with collateral from their EPF.
Johari also criticised the previous administration for allowing indiscriminate EPF withdrawals during the COVID-19 pandemic, including to those not financially affected by the outbreak, which burdened EPF, which had to liquidate its long-term investment assets.
The plan to use EPF as collateral was announced by Prime Minister Anwar Ibrahim in response to calls for another round of EPF withdrawal.
Nevertheless, Twitter users weighed in after Johari’s statement.
User @chooeh2 said:
Semua perkara kecemasan bergantung kepada individu. Turunkan taraf hidup jika tidak mampu, seperti guna public transport, jual rumah besar tukar ke rumah kecil. Saya pernah buat demikian. tak payah keluarkan wang KWSP sehingga cukup umur
— MIC Zhu (@chooeh2) April 9, 2023
“All emergency matters depend on the individual. Lower the standard of living if you can’t afford it, like using public transport, selling a big house and shifting to a smaller house. I used to do that. No need to take out EPF money until you are old enough,” said the user.
The advice from the user seems to be more sound than that of the former minister, who some say is testing the waters for popularity.
User @abensempoi85 added:
Sekadar nak sokongan populis sahaja, walhal dia pun tahu apa kesan kalau pengeluaran KWSP dibenarkan tanpa ada kekangan. Sembang kosong.
— Muhammad Firdaus (@abensempoi85) April 9, 2023
“He just wants the populist support, even though he knows the effect if the EPF withdrawal if allowed without any restrictions. Empty talk,” said the user about Johari.
Someone had a better idea on how to teach those who want to withdraw their EPF money to save their current lifestyle.
Moreover, @zidjianzz commented:
Kerajaan buat jelah pengeluaran semua duit kwsp untuk rakyat yang nak sangat then tutup akaun kwsp dan buat satu surat akuan janji dah tua nanti kerajaan takyah bagi bantuan apa apa kalau dah tak ada duit. Walaun PN cytro pun tak ada job nanti meeting cari point lain.
— ^^ (@zidjianzz) April 9, 2023
“The government should just allow withdrawals of the EPF money for those who are desperate and close their account. Then, write an undertaking letter that the government will not provide any help in the future if there is no money left. The Perikatan Nasional cytro (followers) won’t even have a job too, then they’ll look for other points (to criticise the government).” — April 9, 2023
