Cuepacs president Adnan Mat said the umbrella union had agreed to the government’s move to allow withdrawals from the EPF in the initial stages of the Covid-19 pandemic and the implementation of movement control orders because it would help people cope.

“However, after almost two years of dealing with the Covid-19 pandemic, Cuepacs sees the country’s economy recovering and growing with the government no longer imposing strict restrictions on the economic sector.

At the same time, the people are no longer subject to movement restrictions and can return to their activities and businesses.

“Taking these factors into account, Cuepacs is of the view that there is no longer a need for the government to allow withdrawals from the EPF savings of workers,” he said in a statement.

In response to the financial turmoil faced by many due to movement restrictions, the government allowed contributors to withdraw money from their retirement funds early through the i-Lestari, i-Sinar and i-Citra schemes.

With the last disbursements set to be paid this month, some have said that people should still be given the option to take money out as the pandemic’s effects have yet to fully dissipate.

More than RM100 billion is said to have been withdrawn from the EPF under these schemes. This has not been without drawbacks however, as the EPF has reported that about half its contributors now have less than RM10,000 in their accounts.

Adnan said if further withdrawals were allowed, “many will retire with too little in their EPF accounts and will likely become poor retirees”.

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