Higher EPF withdrawal for first-time homebuyers?
Published on: Thursday, October 06, 2016
Kuala Lumpur: The Finance Ministry has proposed increasing funds in the Employees Provident Fund (Account 2) to 40 per cent from 30 per cent to aid those buying their first home. Second Finance Minister Datuk Johari Abdul Ghani was reported as saying that if the plan were to be implemented, it would only benefit first-time homebuyers who purchased affordable houses, The New Straits Times reported Wednesday. "As with unit trusts, house buyers must return proceeds from any subsequent sale back to their EPF accounts.
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"There will not be a blanket increase. We are looking at a specific percentage and how EPF can allow some of the money to be used by first-time homebuyers for their down payments," Johari was quoted telling a media briefing here. NST reported EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan as saying that the fund would not be able to commit for certain to the proposal and that the EPF was currently exploring options with the Finance Ministry. "In fact, the quantum is not even confirmed… (it) could even be less. This is only one of the suggestions on the table," Shahril was quoted saying. "The ministry is looking at suggestions to enable the people to buy homes and this is one of the many suggestions.
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I do not know whether this will be announced as one of the initiatives in the 2017 Budget," he added. Johari reportedly said Putrajaya was looking to prevent the duplication of programmes among ministries to reduce operational expenses in Budget 2017, noting that some ministries conduct similar entrepreneurship and research and development programmes. The Minister also reportedly said emoluments could not be cut as it involved the salaries of 1.6 million civil servants and pensioners.
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