EPF members can check application status of special withdrawal facility starting April 9

Thursday 20 Jun 2024

KUALA LUMPUR (March 29): Employees Provident Fund (EPF) members who wish to withdraw their savings under the special withdrawal facility can do so through the pengeluarankhas.kwsp.gov.my portal, which can also be accessed via the i-Akaun mobile application starting April 1.

In a statement on Tuesday (March 29), the EPF said a single payment of the amount applied will be credited directly into the members’ respective current or savings bank accounts.

“Members are urged to ensure that their bank accounts are active and registered under their own names.

“Shared bank accounts or business registered accounts are not allowed. Members can check their application status starting April 9 via the pengeluarankhas.kwsp.gov.my,” it said.

The EPF said members are advised to check their EPF savings balance via i-Akaun (Member), i-Akaun mobile application, or EPF Kiosk, before applying for withdrawal.

It reminded that the maximum amount allowed for withdrawal under the special withdrawal facility is RM10,000, with a minimum transaction amount of RM50, and members must fully utilise their savings balance in Account 2 before accessing their Account 1. They must also leave a minimum RM100 in their account.

On March 16, the EPF had announced that application for the withdrawal facility would be open to members below the age of 55 starting April 1 and ending on April 30, while payment will be made beginning April 20.

“The special withdrawal is aimed to assist members who remain financially impacted by the pandemic to meet today’s urgent needs.

“The EPF reminds members to consider their long-term income security, and only withdraw their savings if it is absolutely necessary. Members may consult the EPF’s Member Advisory Service at EPF branches throughout the country for advice on their EPF savings,” said the pension fund.

Prior to this, the EPF said the new special withdrawal of RM10,000 announced by the government on March 16 to help Malaysians cope with the impact of the Covid-19 pandemic should be the last such withdrawal allowed. It had reiterated its concerns over the retirement security of Malaysians given that many have woefully insufficient funds.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz Tengku Zafrul had earlier cautioned that the EPF would have to dispose of more overseas investments, as well as halt domestic investments in the short to medium term, if another RM10,000 withdrawal — which would amount to RM63 billion for 6.3 million eligible members — was allowed.

He warned the portfolio rebalancing that the EPF would have to do to accommodate the withdrawal would affect not just the future dividends the retirement fund could pay its members, but also its position as one of the largest domestic equity and bond investors. In addition, it would impact its role as a liquidity provider for the government bond market.

He also disclosed that last year's EPF dividend rate would have been higher at 6.7%, compared with the 6.1% announced recently — and an additional dividend of RM5.4 billion could have been distributed to all EPF members — if the previous special withdrawals had not been made.

In announcing its dividend payout for 2021 earlier this month, the EPF, which has about 15 million members, said about 6.1 million have less than RM10,000 in savings, while 2.1 million have less than RM1,000.

Since the Covid-19 pandemic two years ago, the government has allowed the withdrawal of EPF contributions through three schemes — namely i-Lestari, i-Sinar and i-Citra — amounting to RM101 billion and involving 7.34 million contributors.

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