Hence, the unconditional withdrawal of EPF funds should not be allowed to continue indefinitely. Perhaps one measure to consider in encouraging more savings by informal workers in EPF is through a ringgit-to-ringgit matching contribution, as has been done in Singapore. Under the Matched Retirement Savings Scheme in that country, the government matches every dollar of cash top-up made to the retirement account of Central Provident Fund Board members, up to S$600 (RM1,832) annually. In Malaysia, perhaps this kind of matching grant could also be given to parents whose children top-up their parents’ EPF savings or vice versa. The extra matching of monies would mean EPF will have more funds to invest despite withdrawals under the relaxed i_Sinar scheme.

Source: The Star March 02, 2021 03:45 UTC