Impact of withdrawals coming home to roost

VARIOUS groups, including the Consumers’ Association of Penang (CAP), had cautioned the government against allowing Employees Provident Fund (EPF) members to withdraw their savings through i-Lestari and i-Sinar in 2020, i-Citra in July 2021, and a special withdrawal in March 2022. However, the caution fell on deaf ears.

EPF savings are meant for the members to use when they retire and not for them to withdraw to tide over financial difficulties such as during the Covid-19 pandemic. Such withdrawals, especially for those with limited savings, would leave them impoverished in their golden years.