SURELY ONE OF ‘TIN KOSONG’ ANWAR’S ‘STUPIDIEST’ IDEAS – OR DID IT COME FROM ‘FRIED RICE’ AHMAD MASLAN? – HOW CRACKPOT TO PROPOSE ALLOWING EPF SAVINGS AS LOAN COLLATERAL – ‘SO WHAT HAPPENS IF BORROWERS DEFAULT ON THEIR LOANS?’ – WHY NOT TIN KOSONG JUST STAND FIRM ON WITHDRAWAL BAN? – THOSE REALLY IN NEED DON’T HAVE ENOUGH TO TAKE ANYTHING OUT – THOSE AGITATING FOR IT JUST WANT TO SPLURGE THEIR MONEY NOW, WHICH IS EXACTLY WHY PENSION SAVINGS WERE MADE MANDATORY IN THE FIRST PLACE
Bad idea to use EPF savings as loan collateral, says union
The Sarawak Bank Employees’ Union says contributors’ savings are protected from bankruptcy proceedings under the EPF Act.
PETALING JAYA: A bank workers’ union has criticised the government’s proposed scheme to allow Employees Provident Fund (EPF) contributors to use their Account 2 savings as collateral for personal bank loans.
The Sarawak Bank Employees’ Union said the government’s proposal was “ill-conceived”, pointing out that contributors’ savings were safeguarded from bankruptcy proceedings under the EPF Act.
“Secondly, banks are going to charge a higher interest rate than EPF dividends, so contributors will see their overall financial position worsen further.”
He said many workers were already spending a significant portion of their income to repay housing, vehicle and consumer loans.
In his Budget 2023 winding-up speech yesterday, Prime Minister and finance minister Anwar Ibrahim said the proposed scheme would only be for those in desperate need of funds and were forced to apply for bank loans.
Anwar reiterated that he did not agree with allowing another round of special EPF withdrawal.
In response, EPF said it was assessing the proposed scheme and will consider all the relevant factors involved for it to be implemented smoothly.
FREE MALAYSIA TODAY
.