Using EPF savings as collateral won’t affect dividends, says PM
Published on: Tuesday, March 21, 2023
By: FMT
Anwar Ibrahim said the finance ministry had sought the advice of the attorney-general and the EPF on the proposal to allow contributors to use their savings as collateral for bank loans. (Bernama pic)
PETALING JAYA: The use of retirement funds as collateral for bank loans will not affect the dividends of EPF members, says Prime Minister Anwar Ibrahim.
“For example, in the case of an RM50,000 loan (where savings are used as collateral), the dividends the borrower receives are calculated based on their original (savings) amount,” said Anwar, according to a Bernama report.
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“So, there is no reduction (of dividends),” he said during the Ministers’ Question Time in the Dewan Rakyat today.
He was responding to a question from Muslimin Yahaya (PN-Sungai Besar) on the proposal to use EPF savings as collateral for bank loans.
Anwar also reiterated that the use of retirement funds as collateral did not violate the EPF Act, and that the finance ministry has sought the advice of the attorney-general and the EPF on the matter.
Previously, Anwar announced the government would introduce a system that would allow contributors in dire straits to take up loans from a bank using their EPF savings as collateral.
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