WHILE many have lauded the Government’s decision to relax rules for the i-Sinar withdrawals, a veteran unionist have urged contributors to practice restraint when withdrawing funds from the Employment Provident Fund (EPF) Account 1.
“Ideally, the Government should be rolling out more direct cash aid to those who lost their jobs or had their salaries cut, not allow people to dip into their retirement savings.
“But these are unprecedented times, so people deem it right to dip into their EPF savings as it is their money anyway.
“However, I believe that unless people have alternative savings elsewhere which offer higher returns, they should leave their monies in EPF,” K Veeriah told FocusM.
On Thursday, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the EPF will be removing all conditions attached to the i-Sinar withdrawal facility.
He said the decision was made based on Prime Minister Tan Sri Muhyiddin Yassin’s advise, after getting feedback from various quarters.
Former Prime Minister Datuk Seri Najib Tun Razak had been urging the Government to relax rules for the i-Sinar withdrawals since last year, which became one of the many sore points between allies Umno and Parti Pribumi Bersatu Malaysia (Bersatu).
Touching on the matter, Veeriah dismissed views of certain people who said that relaxing conditions for the i-Sinar withdrawal would allow the public to have more disposable income in hand.
EIS needs a complete overhaul
“That is a crazy notion. EPF money is not an income. It’s basically people dipping into their own savings to make ends meet.
“With that being said, I urge EPF contributors to only withdraw the sum which they need and use it meet daily expenses, not indulge in a spending spree.
“In my view, it doesn’t make sense for someone who had their salaries cut by 10% to withdraw up to RM60,000 from EPF to meet the shortfall,” he stressed.
Veeriah said that the pandemic and the economic downturn triggered by the former had exposed how weak the nation’s fundamentals are, particularly in protecting workers.
Therefore, he urged the Government to improve the Employment Insurance Scheme (EIS) to ensure those who lost their jobs are better protected, instead of the current 6-months compensation.
“The Government should work on rolling out direct cash aid to those hit hard by the economic downturn, which must also include coverage for medical condition,” Veeriah opined.
On related matter, UNI-Malaysia Labour Centre (UNI-MLC) president Datuk Mohamed Shafie BP Mammal urged the Government to expedite the i-Sinar automatic withdrawal facility as many are in dire need of funds to make ends meet.
Shafie also suggested to the Government to increase the RM1,000 a month threshold to RM2,000 as many of the contributors face unique challenges, depending on their circumstances.
“Some may need to pay off debts taken to cover their daily expenses, with others losing their jobs and had their remuneration slashed.
“If we can increase the quantum to RM2,000 monthly, the people can have the much needed relieve during these tough times,” Shafie opined. – Feb 14, 2021.
