PUTRAJAYA — March 23, 2020: The government is now allowing contributors to the Employees Provident Fund aged below 55 years to withdraw a maximum of RM500 monthly for the next 12 months to help them buy essential goods.
Even though the amount is insignificant and this is money meant to be used during retirement, government is now allowing this withdrawal due to the outbreak.
“This initiative worth RM40 billion in withdrawals is expected to benefit almost 12 million EPF contributors with applications to begin from April 1,” said Prime Minister Tan Sri Muhyiddin Yassin today.
Muhyiddin hopes the initiative and the decision to reduce the statutory contribution rate for employees by four per cent (from 11 per cent) will further ease the people’s hardship. The reduced rate is also effective April 1.
“My advice to all of those benefiting from this is to use the money wisely. Buy only necessary items in these trying times.
“Most importantly, ensure there is food on the table for the family. Maybe some of the money can be used to pay for your utility bills or rentals,” he said.
Malaysia registered its 11th Covid-19 death today from the reported 1,306 cases as the country enters the sixth day of the movement control order that will last until March 31.