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The Sun (Malaysia) - - FRONT PAGE -

be­tween their fi­nanc­ing and the house price.

“It will not be a blan­ket in­crease (of funds that can be with­drawn from EPF) but we are look­ing at a spe­cific per­cent­age. We can ex­plore how EPF can a l l ow s ome of t hese con­trib­u­tors to use part of their money t o ( help t hem) pay in­stal­ments for their first homes,” he told re­porters at a Na­tional Cham­ber of Com­merce and In­dus­try of Malaysia round­table ses­sion here yes­ter­day. “This has to be in the cat­e­gory of af­ford­able homes and not high­end houses,” Jo­hari added. He said a r ecent sug­ges­tion to in­crease the dis­tri­bu­tion of funds to Ac­count Two, which can be drawn down, is “timely” as it would al­low con­trib­u­tors to tap into more of their sav­ings to buy their first home. Mah Sing Group Bhd had sug­gested the gov­ern­ment re­vise the per­cent­age of funds for EPF ac­counts. Cur­rently, 70% of con­tri­bu­tions go into Ac­count One, while Ac­count Two re­ceives 30%.

Mah S i n g o p i n e d that con­tri­bu­tions to Ac­count Two could be in­creased to 40% in­stead, so that con­trib­u­tors can have more funds to pay for the down­pay­ment of their prop­erty, re­duce hous­ing loans and/or pay monthly hous­ing loan in­stal­ments.

“Maybe we need to ex­plore some flex­i­bil­ity. We are try­ing to dis­cuss it with EPF ... we haven’t come up with so­lu­tions yet,” said Jo­hari.

He said at a later stage when the house buyer de­cides to sell the house, pro­ceeds from the sale should be re­turned to EPF.

“Just like unit trust, you can take the money from EPF to in­vest in it. But once you sell your units, you have to put back your pro­ceeds into EPF,” he added.

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