According to Prime Minister Datuk Seri Anwar Ibrahim, the government has approved the use of Employees Provident Fund (EPF) contributors' Account 2 savings as security for bank loans to help them get through trying situations.
The collateral arrangement is better suited, according to Prime Minister Datuk Seri Anwar Ibrahim, to help contributors who are in "desperate" need instead of needing to use their savings.
"I am open to any criticism levelled at me for refusing to permit more withdrawals. Yet we must uphold the notion that these are retirement savings." He stated in Dewan Rakyat during his closing remarks on the 2023 Supply Bill. "As a result, I'll make sure that the EPF allocates funds to contributors who have enough money in their accounts to enter into loan arrangements with banks."
Previously, Prime Minister has warned that 71% of active Employees Provident Fund (EPF) contributors aged 55 and under do not have enough money in their EPF accounts to maintain them above the poverty line.
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