Anwar Adamant No EPF Withdrawals, But He Offers Alternative
KWSP members can use their savings as collateral for emergency loans.


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The government will introduce a method that allows Employees’ Provident Fund (KWSP) contributors to use their savings as loan collateral.
Prime Minister Datuk Seri Anwar Ibrahim said any EPF contributor ‘desperate to obtain a financial loan’ will benefit from it.
Anwar said KWSP money is for old age savings, but the government gave flexibility during the COVID-19 pandemic.
He pointed out that other countries with the same flexibility have already stopped allowing such flexibility.
But I still listen to the views; therefore I propose to introduce a method to make things easier for desperate people. EPF will give room for its contributors to take bank loans with their savings as collateral.
Prime Minister Datuk Seri Anwar Ibrahim on uisng KWSP money as bank loan collaterals.
Govt to allow EPF savings as collateral for emergency loans: Anwar https://t.co/vGPf6Klu1h
— Cybersandhu (@napoleontheONE) March 9, 2023
Speaking in Parliament, Anwar maintained that the EPF money is for old age savings, but the government gave flexibility during the COVID-19 pandemic.
Anwar, also the Minister of Finance, said the proposed condition is that applicants must have sufficient savings in their EPF accounts.
He gave the example of a person who has RM1 million (in the EPF) but could not use the money to clear his business debts of around RM180,000 to RM200,000.
Anwar said while the person can’t ‘withdraw’ money from the KWSP, he can use it as bank collateral.
For A Better Tomorrow
The KWSP is a retirement savings scheme managed by the government.
Here are the rules for the KWSP withdrawal in Malaysia:
- Age 55: At 55, members can withdraw their full EPF savings, including the employee’s and employer’s contributions.
- Retirement: Members who retire from employment on the grounds of invalidity, incapacity or reaching 60 are eligible to withdraw their EPF savings.
- Withdrawal for housing, education, and medical expenses: Members can withdraw from their Account 2 for housing, education, and medical expenses. However, this is subject to certain conditions and limitations.
- Withdrawal for Hajj: Members can also withdraw from Account 2 to finance their pilgrimage to Mecca.
- Withdrawal due to death: In the event of the member’s death, the EPF savings will be distributed to the nominated beneficiaries or legal heirs.
It is important to note that EPF members must have a minimum balance of RM1,000 in their Account 1 to be eligible for any withdrawal.
Before applying, members are also advised to check with the KWSP regarding the specific rules and withdrawal requirements.
People always misunderstood that the epf money belong to them. Actually the epf money technically belongs to epf (including those deducted from your base pay), but will be given to contributors under specific rules per agreement (special withdrawal, after reaching certain age).
— bangipola (@bangipola1) February 22, 2023
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