KUALA LUMPUR, Nov 23 — Any new additional pre-retirement withdrawals, whether targeted or open, will further exacerbate the issue of insufficient retirement savings, which is currently at a very alarming level, said the Finance Ministry.
It added this is also not a solution to the increasing financial burden of the people.
“As of September 30, a total of 6.3 million members or 48 per cent of members under 55 years old, have savings of less than RM10,000 in the Employees Provident Fund (EPF) compared with 4.7 million members or 37 per cent recorded in April 2020 before special withdrawals related to Covid-19 were introduced.
“With savings of less than RM10,000, members are expected to have retirement income of less than RM42 per month for a period of 20 years,” it said in a written reply published on the Parliament website today.
MoF was responding to a question from Pasir Gudang MP Hassan Abdul Karim, who asked whether the government is considering the request of people currently experiencing hardship to allow targeted withdrawals from their EPF and what the government’s stance is on these targeted EPF withdrawals.
It said Malaysia’s economy is no longer in the recovery phase, and the gross domestic product (GDP) has surpassed pre-pandemic levels.
“Economic activities are picking up as many businesses operate at full capacity, and most workers have returned to work to generate income.
“This is evident as the number of active EPF members has also reached the highest level in history, namely 8.5 million as of September, with an increase of 910,000 members or 12 per cent compared with 7.6 million recorded in September 2021,” it said.
Meanwhile, in response to a question from Sabak Bernam MP Kalam Salan on the extent of the feasibility study conducted on the goods and services tax (GST), taking into account the current economic situation in Malaysia’s fiscal reform and its implications for the people, MoF said the government has no intention of reintroducing GST at the moment.
“Any changes to tax policies will consider the economic impact and livings cost for the people.
“Therefore, the government is always monitoring the current economic situation and considering fiscal measures that are suitable for short-term and medium-term needs,” it said.
Responding to a question from Cheras MP Tan Kok Wai on the total amount of contributions made by Malaysia to other countries for each year in the last two and a half years and the details of each contribution, MoF said Malaysia had contributed a total of RM10.93 million to countries affected by disasters between 2021 and June 2023.
The amount includes RM1.68 million for 2021, RM3.64 million for 2022, and RM5.61 million for the period from January to June 2023.
— Bernama
