EPF receives over 5.3 million applications under Special Withdrawal facility, amounts to RM40.1 billion

As of Thursday (14 April), the Employees’ Provident Fund (EPF) has received 5.3 million applications amounting to RM40.1 billion under the Special Withdrawal facility in just 2 weeks after applications open.

In a statement, EPF said the payments would be made in batches, with the first one set to commence on the coming Wednesday (20 April).

“The number of applications received represented 44% of the 11.95 million members eligible to withdraw their savings under the facility.”

“Breaking down by wage groups, this represented 55% of eligible B40 members (those earning less than RM1,700), 59% of M40 members (RM1,701-RM4,900), and 39% of T20 members (those earning more than RM4,900),” it said.

Meanwhile, EPF also shared that Bumiputera Malays made up the bulk of applicants at 63%, followed by Chinese (12%) and Indians (7%) while the remaining 17% were non-Malay Bumiputeras from Sabah and Sarawak and non-Malaysians.

Among the reasons behind the withdrawal include reduction in income/wage (24%), to assist affected spouse/family members (23%) and to increase sources of income (14%).

“As for the utilisation of proceeds, 40% said it will be for the purpose of supplementing daily/monthly essential expenditure, settling outstanding debts (26%), increasing emergency fund (8%) and assisting affected family members (7%),” EPF added.

The remaining 19% applicants said they need the money to pay for children’s education, non-essential expenditure and investment.

EPF said it has put in place measures to prevent irresponsible third parties or scammers from making fake submissions.

The pension fund also advised its members not to share photos or documents of their submissions on social media and to exercise caution when withdrawing their money to avoid falling victim to potential scams and fraudsters.

“The EPF reminds members to consider their long-term income security and withdraw their savings only if absolutely necessary and utilise the money wisely and for the stated purposes,” it added.

The Special Withdrawal facility will be closed on 30 April.

What do you think about this EPF 2020 Special Withdrawal? Share your thoughts in the comment section below!