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KUALA LUMPUR – The government is obliged to protect people at risk, such as Employees Provident Fund (EPF) contributors who do not have enough savings for old age, said Economy Minister Rafizi Ramli.
This is why the government does not allow targeted EPF withdrawals, he said, adding that even though such withdrawals are seen as an initiative not involving the government’s money or efforts, permitting them would reduce the people’s retirement savings.
He said shrinking funds would limit EPF’s ability to diversify and strengthen its investment strategy to obtain better profits.
“This will have an impact on other contributors even if they do not withdraw their EPF contributions because if the overall return is low, then other contributors will also bear the impact,” he said in an Instagram video post today.
Rafizi said the government seeks to increase contributions and savings for old age instead of allowing withdrawals as demanded by some fund members, adding that the government opted for a way that benefits all parties instead of a shortcut that will create problems for future leaders to solve.
Rafizi said this in response to the walkout staged by opposition MPs during the Dewan Rakyat sitting this morning when a motion to debate the issue of targeted EPF withdrawals was rejected. – Bernama, April 3, 2023