Thursday, March 30, 2023

Gold rush in Malaysia as M’sians spend their EPF special withdrawal on gold and jewellery

Social NewsGold rush in Malaysia as M'sians spend their EPF special withdrawal on...

Employees’ Provident Fund (EPF) has seen over 5.3 million applications amounting to RM40.1 billion under the Special Withdrawal facility in just 2 weeks after applications open.

However, it appears that some are using that money to invest in gold.

Speaking to The Star, R. Sivashankary said she is using the RM10,000 to buy gold as a hedge against inflation. “This investment is safe and reliable and it will certainly come in handy if I ever need it in future.”

“It’s the second time I’m using my EPF money to buy gold,” she said.

Sivashankary, who is an online sales and marketing assistant, said she will buy a necklace this time as she has bought a chain with an earlier withdrawal.

“I like the pieces I own and the value is less likely to depreciate. I can wear them and if I need money, I can always sell them off,” she said.

She added that it was nice to be able to spend her hard-earned money on herself. “The EPF money is something we can usually withdraw only after retirement to use on our children, spouse or other financial commitments. I am glad I can spend it now,” she said.

Meanwhile, VKN Jewellers director S. Yuvabalan said he notice the sale of gold bars has picked up recently. He believes that people see gold as an investment option as gold prices will keep going up.

“Others buy jewellery for cultural celebrations, like when their children are getting married.”

“Gold is considered a good investment,” he said.

The President of the Muslim Jewellers and Money Changers Association of Penang, Datuk Dr Anvar Hussain Rahumathullah said he has noticed the same situation where people are buying gold with their special EPF withdrawal.

“Those with holding power can buy gold as the resale value is good. Whenever gold prices go up, one can always sell it and make a profit,” he said.

Gold prices have surged in the past 2 years, hence many consider it a great option for investment.

What do you think about this? Share your thoughts!

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