Rep worries about withdrawal from EPF retirement fund

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SIBU: Encouraging people to make withdrawals from their Employees Provident Fund (EPF) Accounts I and II is rather worrying, says Bukit Assek assemblywoman Irene Chang.

She pointed this out yesterday in reaction to Budget 2021 tabled by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in Dewan Rakyat Friday afternoon. Chang stated that EPF is supposed to be savings for retirement.

In the Budget, the government will allow EPF contributors to withdraw RM500 per month up to 12 months or RM6,000 in total from their Account 1 to assist members who have lost their jobs.

On another issue, she pointed out that no fund was allocated to Chinese independent schools in the budget under Perikatan Nasional government compared to the previous Pakatan Harapan government which allocated RM12 million in 2019.

On this year’s budget allocation of RM322.5 billion and with expected reduced projected revenue of RM227.3 billion due to Covid-19, she wondered where the government is going to the funds from.

“If we have to borrow these funds, then our national debt would shoot up again,” added Chang.