Mixed reactions to EPF withdrawals
Some contributors welcome new move, others prefer to keep retirement fund intact
GEORGE TOWN: For many, the chance to withdraw from their Employees Provident Fund (EPF) Account 1 could not have come at a better time.
A flight attendant, who wanted to be known as Fatin, was relieved when the government modified the conditions to allow for more EPF contributors to withdraw their savings.
“My company is kind enough to still pay me my basic salary. But when I was actively flying, my allowances and incentives were triple the amount of my basic salary,” said Fatin, 25.
She said most of her colleagues now get a take-home pay of just between RM1,000 and RM1,500 a month.
With a frequency of just one flight per month for each flight attendant, she said many of them were struggling to survive.
“While we are lucky to keep our jobs, our savings cannot last us for long.”
On the EPF withdrawals, she said:
“When the government initially allowed only those who have lost their jobs, given no-pay leave or have no other source of income to withdraw from Account 1, we were so worried because it meant we were not eligible.
“We know the money is meant for our retirement, but we are facing
problems in the present”.
Fatin said she tried to get a parttime job as a waitress in a fine dining restaurant but the owner refused to hire her when he learnt that she would still fly occasionally.
“They were afraid I would bring the virus to the restaurant,” she lamented, adding that many of her colleagues also found it hard to get part-time jobs.
For now, Fatin has ventured into selling beauty products online.
She said she would use part of her Account 1 withdrawal to boost her marketing efforts.
Another steward, who wanted to be known as Ben, 25, said he was in a similar situation.
He could not find a part-time job and is struggling with his loan repayments.
“Flight attendants and pilots are considered to be in a higher risk group of contracting Covid-19. Many employers don’t want to give us parttime jobs because of that. This is why we struggle to sustain ourselves or pay our debts,” said Ben.
About eight million EPF contributors will be able to withdraw up to RM10,000 from their retirement savings under the i-Sinar facility to help them deal with financial hardship amid the pandemic.
Applications are open from next month and payments will be made in January.
But there those who prefer to keep their Account 1 intact.
Parcel deliveryman Muhammad
Husaini Johari, 26, said: “While I welcome the move, I will not withdraw from my account. It is my money for the future.
“Although I have a full time job to help pay my mortgage, I took up a part-time job as a food deliveryman two months ago,” he said.
As he recently withdrew some money from his Account 2 to buy a house, Husaini said he was not keen to touch his EPF savings.
Quality control inspector K. Prakash, 31, also has no plans to use his Account 1 funds.
“As I am single, I do not have a lot of commitments. I will save the money for my future. Since I have a full-time job, I am not hard pressed for money.
“The government’s decision is timely for those who lost their jobs during the MCO. The money can be used to start a business or settle their financial commitments,” he said.
Prakash said he had earlier used a portion of his Account 2 to pay for his studies.
“I’ve decided to save my money in Account 1 for the future. I also worked part-time during the MCO to generate more income,” he said.