Govternment ‘no’ to haj withdrawals from EPF

Thursday October 29, 2009
AT THE DEWAN RAKYAT
Reports by LEE YUK PENG, ZULKIFLI ABD RAHMAN, LOH FOON FONG AND YENG AI CHUN

THE Government has no plans to allow Employees Provident Fund (EPF) contributors below the age of 50 to withdraw part of their savings to perform the haj.
Deputy Finance Minister Datuk Dr Awang Adek Hussein said those aged between 50 and 54 could withdraw from Account II — which is 30% of their total EPF contributions — for various purposes including financing haj trips.
He noted that the EPF was created to ensure contributors would have enough savings past their retirement age.
“Withdrawing EPF savings to pay for haj trips will only deviate from the fund’s objectives and philosophy.
“The contributor will be left with insufficient funds for his retirement,” he told Zulkifli Nordin (PKR - Kulim Bandar Baru).
Dr Awang Adek urged Muslims to invest more in accounts managed by Tabung Haji to ensure they had funds to perform the haj.
He said the Government could not give too much leeway when it implemented a certain policy like the EPF Act.