Barjoyai Bardai, of Universiti Tun Abdul Razak, said in addition, the government could introduce the food stamp system, which is a system of issuing food coupons, to ensure aid reached the less fortunate.

He also proposed that banks or financial institutions extend the loan moratorium period, which ended last month.

These measures, he said, were more suitable than allowing EPF contributors to withdraw their savings from their Account 1, which is meant for their old age.

“Contributors are actually worried and they may feel it is an easy way out, but EPF was created to ensure workers will have enough savings after their retirement,” he told Bernama.

EPF operations division deputy CEO Mohd Naim Daruwish said recently that 54% of EPF contributors, aged 54 and above, have savings of less than RM50,000 for retirement, adding that only 34% of the 14.6 million active EPF contributors reached the level of basic savings by age.

Alternatively, Barjoyai suggested that the government change the withdrawals into a scheme where the contributors would have to pay higher contributions in the future when the Covid-19 pandemic is over.

“They can take (from Account 1) but should be made to repay a slightly higher amount in the future. For example, if you are contributing 11% (of the total monthly salary) now, you need to increase it by 4%. The employers’ contribution can also be increased,” he said.

On Oct 30, Prime Minister Muhyiddin Yassin said that accessing EPF members’ Account 1 savings to address the daily challenges caused by Covid-19 now could result in contributors facing bigger problems in the future.

Yesterday, EPF CEO Tunku Alizakri Alias urged members to make an appointment with its retirement advisory service officers to help plan their finances, which can take into account all forms of assistance available and help tide them over tough times.

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