The KWSP has not yet announced how the Special Drawdown Scheme will be disbursed, that is, whether it will be a one-time disbursement of up to RM10,000 or a multi-month disbursement.
According to the information issued by the Employees Provident Fund Board (KWSP), people are allowed to withdraw up to RM10,000 from their provident fund accounts, with a minimum deposit of RM50 and a maximum withdrawal amount of RM10,000.
Applications for the Special Withdrawal Scheme will be open from April 1 to April 30, 2022 and people can receive the money from April 20 at the earliest and the money will be released to them by bank transfer.
KWSP has not yet announced how the Special Withdrawal Plan will be distributed, i.e. people will receive RM10,000 in one lump sum, or it will be distributed in multiple months like the previous three withdrawal plans.
It is expected that KWSP will continue to use the multi-month payment method because it would be a serious burden on the KWSP system and banks to pay out large amounts of money to the public in one go. The use of a one-time disbursement will also force KWSP to sell assets to raise funds in a short period of time, which could cause turmoil in our financial markets.
A lump sum disbursement of RM10,000 by KWSP will also result in people receiving the money too quickly and spending it too quickly, which will not serve the purpose of helping people in need.
KWSP is expected to announce more details of the withdrawal in the near future.
