KUALA LUMPUR: The Finance Ministry should reveal its formula for concluding that the median savings in the Employees Provident Fund (EPF) accounts fell to as low as RM5,500 during the Covid-19 pandemic, says Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam).
The MCA president said this figure needed explaining, especially considering that assets in the EPF had reached almost RM1 trillion with an estimated 14 million contributors as revealed in its financial report for 2021.
"If it is possible, can you explain to us as I am worried that people will say the money is missing.
"I want to know the truth and the authenticity of this data," he said when debating the wrap-up by the Finance Ministry on the motion of thanks for the Royal Address on Wednesday (Feb 22).
Deputy Finance Minister Datuk Seri Ahmad Maslan said the median was derived by ordering all the data points and picking out the middle part of the bell curve.
"It is not the average but we took the median savings," he said.
He also revealed that the top 20 earners (T20) are "monopolising” the EPF savings.
According to him, a total of 2.6 million members come from the T20 category, with savings of RM538bil that grew by 11% to RM597bil.
In contrast, he said, there were 5.2 million members in the B40 group before April 2020 with savings of RM13bil.
"After December last year, their savings had reduced by 46% to RM7bil," he said.
As for the middle-income (M40) group, there were 5.2 million with savings of RM191bil as of April 2020.
"However the figures dropped by 28% to RM131bil (by the end of last year)," he said.
Datuk Seri Ismail Sabri Yaakob (BN-Bera) then stood up to say that the government should allow a targeted withdrawal for those who qualified and had enough savings.
"If they qualify, just allow them to withdraw. We want only those who qualify. The government has the power to set conditions," he said.
Datuk Seri Dzulkefly Ahmad (PH-Kuala Selangor) also agreed with the suggestion, proposing that the government should set stringent rules before allowing a targeted withdrawal.
Ahmad Maslan said the previous government had allowed such special withdrawals due to the Covid-19 pandemic and now the country had transitioned towards the endemic period.
"Other similar countries that allowed such withdrawals are no longer doing so.
"In reality, those who are (able) do not want to withdraw but those with less savings want to," he said.
He said the upcoming Budget 2023 re-tabling on Friday (Feb 24) will address other alternatives as promised by Prime Minister Datuk Seri Anwar Ibrahim to help those who are truly affected.
