PETALING JAYA: the Social Protection Contributors Advisory Association Malaysia (SPCAAM) today said the three million applications from contributors to withdraw funds from Account 3 of their EPF savings was similar to a case of stealing from the poor to benefit the rich.
“It is estimated that the withdrawals would amount to billions of ringgits, which would be unleashed into the economy and benefit businesses.
“While SPCAAM is for economic and spending stimulus, this cannot come from the retirement savings of people who need it most when they retire,” said Callistus Anthony D’Angelus, SPCAAM’s international labour advisor.
In a statement, he claimed that the government was failing the people in this regard.
“The Madani government has instituted a lot of positive reform, except where it concerns workers.
“It is evident that the balance between labour and capital is heavily weighted in favour of capital and this seems to be the policy of the government being executed by the Human Resources Ministry.
“With that many contributors needing to dip into their retirement savings to sustain themselves on a day to day basis, it means that the country has failed to place sufficient socio-economic policies in place,” he said.
He said the government was actually creating a bigger problem instead of attempting to resolve it.
It was earlier reported that the Employees Provident Fund (EPF) has received 2.86 million applications to transfer an initial amount from Account 2 (Akaun Sejahtera) to Account 3 (Akaun Fleksibel) as of May 22, involving RM8.78 billion.
EPF chief operating officer Sazaliza Zainuddin said a total of 3.04 million withdrawal applications from Account 3 were approved, amounting to RM5.52 billion.
“We expect the number of applications from members choosing to transfer an initial amount to continue to rise until the deadline on August 31.
“We are also pleased to see the significant increase in applications via the KWSP i-Akaun mobile app.
“This reflects our efforts to enhance user experience and accessibility, as we continue to innovate and expand our digital offerings,” he had said.
Starting May 12 until August 31, members will have the option to transfer one-third of their savings from Account 2 to Account 3.
