Najib To Epf Prioritise Helping Drowning Members Not Investments

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Pekan MP Najib Abdul Razak has insisted that the Employees Provident Fund (EPF) allow lump-sum withdrawals to help contributors weather the Covid-19-stricken economy.
This comes as the fund is reportedly planning to enhance its asset liquidation plan in preparation for a potential RM45 billion in withdrawals.
The move is also slated to impact its 2020 dividend rate as well as EPF’s ability to invest.
In a statement today, Najib chided EPF CEO Tunku Alizakri Raja Muhammad Alias over the latter's concern about how the withdrawals would financially impact the fund.
“EPF has to consider whose interests are of greater priority.
“Is it the EPF members who are drowning and need a lump-sum to solve problems caused by the Covid-19 crisis, or is it EPF’s loss of ability to invest?
“To me, the wellbeing and survival of EPF members and their families is the most critical investment needed to be made at this moment,” he said in a Facebook post.
Najib, who helms the BN backbenchers club, previously told the Dewan Rakyat that BN’s support for Budget 2021 was on the condition that EPF members be allowed to make a one-off RM10,000 withdrawal from Account 1 of their retirement savings.
The Perikatan Nasional (PN) government is proposing in the budget Bill that EPF members be allowed to withdraw a maximum of RM6,000 (RM500 a month for 12 months) from their long-term savings account under the i-Lestari scheme.
Its i-Sinar scheme, meanwhile, allows members who have lost their jobs, been given no-pay leave, or have no income source to withdraw up to 10 percent of their EPF Account 1 savings, provided they have a minimum of RM100 in that account.
Critics have implored the government to dig into its coffers to aid the needy instead of allowing EPF members to use up their retirement savings.
Bank Negara can help
As for EPF’s plan to sell off its assets, Najib opined that this could be done with minimal impact on the fund.


The former prime minister and finance minister proposed that EPF sell its Malaysian government securities to Bank Negara.
The central bank can then either hold on to the bonds or trade them on the domestic bond market.
“Or they (Bank Negara) can sell it back to EPF in stages as EPF’s total assets will increase every month as employers and employees make contributions.
“We are not asking EPF to sell its shares or land at a cheap price. Only to temporarily sell a portion of its government securities to pay those who want to make EPF withdrawals to deal with a crisis.
“Why does he want to sell assets?” Najib questioned in yet another veiled jab at Tunku Alizakri.
In July, the Umno lawmaker was found guilty in the Kuala Lumpur High Court for money laundering, criminal breach of trust, and abuse of power charges in the RM42 million SRC International Sdn Bhd case.
Among the transactions in his corruption case was a RM2 billion loan from Retirement Fund Incorporated (KWAP) to SRC International, a 1MDB subsidiary.

- Mkini

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