PUTRAJAYA: Malaysians will be allowed to withdraw part of their Employees Provident Fund (EPF) savings, as the government looks to cushion the impact of Covid-19 on the people.
Prime Minister Tan Sri Muhyiddin Yassin said contributors below the age of 55 will be able to make withdrawals of up to RM500 each month for the next 12 months, from their second account.
“Applications can be made beginning April 1. This initiative is expected to benefit up to 12 million EPF members, with a total withdrawal estimated to be around RM40 billion.
“I hope this initiative, along with the government’s decision to reduce EPF contribution by 4% beginning April, will provide Malaysians with more pocket money to buy essential goods,” he said during a press conference, here, today.
He however urged all quarters to only use the money for purchase of essential items and for payment of bills and rentals.
Muhyiddin said this was among several initiatives that was decided by the government during the Economic Action Council meeting held today, and is part of a revised economic stimulus package that will be announced soon.
The premier said other than the EPF withdrawal, the government has also agreed to allocate an additional RM600 million for the Health Ministry to handle the Covid-19 pandemic, that has so far killed 11 Malaysians (as of noon today).
He said RM500 million of this amount would be used to purchase medical equipment such as ventilators, personal protection equipment and lab essentials.
“Another RM100 million will be allocated for the appointment of 2,000 new staff on a contract basis, particularly nurses.
“A lot of hospital staff are exhausted at the moment as they have to work day and night to screen and treat Covid-19 cases. I hope the hiring of new staff will be done immediately to ensure enough health personnel,” he said.
Additionally, Muhyiddin said the government will channel a total of RM130 million to all states in the country to assist the respective state governments handle the crisis.
The government also agreed to extend the National Higher Education Fund Corporation (PTPTN) loan repayment deferment from three months to six months, involving a total collection of RM750 million benefitting 1.5 million borrowers.
“More detailed comprehensive measures are being studied by the government, taking into account all groups and communities. God willing, I will be able to announce this on March 30,” he said.
“All these measures which I will announce later, will take into account the government’s effort to strengthen the economy of the country in the medium-term. And I hope this will ensure a better life for all Malaysians,” he said.
