Retirement fund withdrawals to spur Malaysia's economic gains

MALAYSIA: An estimated MYR 20 billion (USD 4.7 billion) is set to be released to members of the Employees Provident Fund in the next round of special withdrawals.

Lee Heng Guie, head of the Socio-Economic Research Centre think tank, said this increase in spending would result in a 0.5% injection to economic growth.

“This year, economic growth will be between 5.2% to 6.3%, and consumer spending will increase by 9%,” Lee said.

The government announced the latest special EPF withdrawals to help Malaysians below 55 years old cushion the effects of the Covid-19 pandemic. They are able to withdraw funds from their retirement accounts under specific conditions throughout April.

Lee said this latest round of EPF withdrawal would be the last so that members will still have enough savings for their retirement. The Employees Provident Fund has stated that 6.1 million members (48%) now have less than MYR 10,000 (USD 2,400) in their retirement funds.

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