KUALA LUMPUR, Malaysia (July 1): According to the Employees Provident Fund, the i-Citra project is meant for members to withdraw their savings largely from Account 2 because the facility is already set up for members to access it for certain purposes, such as paying for home loans, medical bills, and education tuition (EPF). All members under the age of 55, according to its CEO, Datuk Seri Amir Hamzah Azizan, are eligible to apply for i-Citra, which allows them to withdraw up to RM5,000 based on their entire combined balance in both Accounts 1 and 2.
The approved withdrawal amount will be paid over a five-month period, with a set monthly payment of RM1,000 based on the savings balance and a minimum of RM50.
“If the balance in Account 2 is insufficient, depositors will be able to access Account 1.
In a virtual “MIDF Conversations” session with Malaysian Industrial Development Finance Bhd (MIDF) group managing director Datuk Charon Wardini Mokhzani, he said, “We’re trying to establish a balance between supporting people and making sure they have adequate [savings] during retirement.”
The i-Citra withdrawal facility is a follow-up to the i-Lestari and i-Sinar EPF withdrawal programs.
Amir Hamzah said RM80 billion had been paid out for the i-Sinar and i-Lestari programmes.
“We’ve come to assist the folks once they retire, but we also recognize that the Covid-19 pandemic is a unique situation.
“We recognize that, and we’re working to find a mechanism to provide them access to their assets within reason,” he said.
The key, according to Amir Hamzah, is to ensure that the EPF maintains its mandate of assisting individuals with their retirement funds.
“At the end of the day, we must remember that the nation’s pension issue must also be addressed.”
Allowing overall savings to dwindle, which is already a concern, will turn into an uncontrollable situation.
The CEO explained, “That is the balancing act the EPF needs to undertake.”
Members can apply for the facility via the i-Citra online portal at icitra.kwsp.gov.my starting July 15, 2021, with the first payment likely to be credited in relevant member accounts in August 2021, according to an EPF statement released on Monday.
A member’s EPF savings account now consists of Accounts I and 2, which differ in terms of their portion of savings and withdrawal flexibility, as of January 1, 2007.
Account I holds 70% of the monthly donation from members, while Account 2 holds 30%.
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