KUALA LUMPUR: The proposal to use Employees Provident Fund (EPF) savings as collateral for bank loans may go against the original objective of retirement funds - which is to provide a financial safety net for retirees, says Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam).
He said accumulated bank loan interest rates were likely to worsen the financial burden on borrowers.
"This may go against the EPF's original objective and the EPF Act which is to protect Malaysians upon retirement," said Dr Wee during his winding-up speech on Budget 2023 at the committee stage in Parliament on Monday . Dr Wee also said the proposal to credit RM500 into the accounts of those aged between 40 and 54 with less than RM10,000 in their EPF account 1, may cause discontent among other EPF contributors."In this situation, active contributors may feel that they are not taken care of by the government despite making regular contributions," he said.
In Budget 2023, it was announced that EPF members aged between 40 and 54 and have less than RM10,000 in Account 1, will have RM500 credited into their respective accounts.
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