No targeted EPF withdrawals, Rafizi says

The government has an obligation to protect the people, especially those at risk such as Employees Provident Fund (EPF) contributors who do not have enough savings for their old age, says Economy Minister Rafizi Ramli.

He said this was why the government was not allowing targeted EPF withdrawals, adding that even though withdrawals were seen as an initiative that does not involve the government’s money or efforts, withdrawing from the EPF would reduce the people’s savings for retirement.

He said shrinking funds would limit the 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 a video on Instagram yesterday.

Rafizi said the government wanted to increase people's contributions and savings for their old age instead of allowing withdrawals as demanded by some contributors, adding that the government had opted for a way that benefits all parties instead of a shortcut that would create problems for future leaders to solve.

He was responding to the walkout by opposition MPs during the Dewan Rakyat sitting yesterday, when the motion to debate the issue of targeted EPF withdrawals was rejected.