KUALA LUMPUR, Aug 8 — The impact of the Covid-related withdrawal programmes on the Employees Provident Fund (EPF) members' savings are estimated at RM155 billion, the Dewan Negara was told today.
Deputy Finance Minister 1 Datuk Mohd Shahar Abdullah said RM145 billion was withdrawn by members under the four withdrawal programmes, and almost RM10 billion was from the impact of the employee share statutory contribution rate reduction programme.
"The level of savings of EPF members is low and very worrying, especially after the implementation of four withdrawal facilities related to Covid-19 namely the i-Lestari, i-Sinar, i-Citra and special withdrawal; and the reduction of the employee share statutory contribution rate for a period of 27 months (April 2020 until June 2022)," he said.
Mohd Shahar was replying to a question from Senator Datuk Razali Idris on measures to help EPF contributors who have savings of less than RM10,000.
As of June 30, Mohd Shahar said a total of 6.62 million members or 52 per cent of the total of 12.78 million EPF members aged under 55 had savings of less than RM10,000.
Of that total, he said 4.99 million members or 75 per cent were Bumiputeras.
“At the same time, there are 3.2 million members under the age of 55, who are at a very critical savings level of less than RM1,000, and 2.58 million members or 81 per cent of them are Bumiputeras.
"As a relative comparison, Bumiputera members make up 64 per cent or 8.22 million of the total 12.78 million members of the retirement fund aged below 55, he said.
“This shows that Bumiputera members made up a large proportion of EPF members with low EPF savings levels compared to other races,” Mohd Shahar added.
— Bernama
