In a Facebook post, Najib said a number of countries, including Australia, Iceland, Spain, the UK and US, had either allowed or encouraged their citizens to withdraw money from their retirement funds to cope with the economic impact of Covid-19.

“Some have allowed a second withdrawal,” he said.

Najib said most countries had set conditions for the withdrawal of funds, including evidence that they had lost their source of income or that their finances were critical.

He said Malaysia could do the same and reject applications to withdraw money for frivolous reasons.

“In my view, a caring government should focus on finding ways to restore or increase the retirement savings of those who are desperate after the Covid-19 crisis ends, not denying the rights of contributors to access their savings in their time of need.

“A government has enormous power and influence to ensure funds for the people generate profits as well as high returns in the future.”

On the possibility that some contributors would lie to withdraw funds, Najib said it was better than denying aid to those who really needed the help.

“That is why the terms for withdrawal do not need to be too stringent or complicated if this withdrawal scheme is approved by the Perikatan Nasional government.”

Previously, Prime Minister Muhyiddin Yassin said EPF contributors would face “bigger problems” in the future if Putrajaya allowed them to withdraw money from their EPF Account 1 now, as this money was supposed to be used after retirement.

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