EPF’s Acct 1 withdrawal increased to RM10,000, more to benefit

By S. Harrish

THE government has decided to allow those who have lost their jobs or suffered pay cuts to withdraw up to RM10,000 from their EPF Account 1.

Finance Minister Tengku Zafrul Aziz said some eight million people will now be eligible to withdraw through the i-Sinar programme.

Contributors may apply to withdraw their funds online or visit any EPF office.

“After discussions with the EPF today, I am pleased to announce that the i-Sinar programme has been opened up to all members whose incomes have been affected regardless of whether they lost their jobs or took a pay cut, and they qualify to make a withdrawal from their Account 1,” he said in parliament today.

Those applying for withdrawals only need to show proof their incomes have been affected, he said.

Those who are no longer active contributors or working in informal sectors that have been affected by the economic downturn from Covid-19, are also eligible to make withdrawals.

This comes after Umno pressured the government to expand EPF Account 1 withdrawals.

The government has also agreed to implement an automatic moratorium on loan repayments for those in the B40 group as well as micro and small-medium enterprises (SMEs).

Those in the B40 income group and micro SMEs do not need to submit any documents for the three-month moratorium extension until December this year.

Those in the M40 income group only need to make a document-free declaration at their respective banks and it will be approved within one to five days.