The Deputy Finance Minister admitted that the EPF SDR scheme will have an impact on the EPF Board’s investments!
In his answer to a question in the National Assembly on March 21, the Deputy Finance Minister said that the introduction of the EPF SDR scheme will affect the EPF Board’s investments, but only in the short term, not in the medium or long term.
The EPF Board will review its existing portfolio in order to reduce the impact of the withdrawal scheme on the performance of the EPF Board’s investments.
It is understood that the EPF Special Withdrawal Scheme will involve about RM63 billion, which will benefit 6.3 million EPF members. The previous three withdrawal schemes involved RM101 billion.
It is generally expected that the number of members applying for withdrawal this time will be less than the previous three times because the economic activities in the country have opened up and a large portion of the people’s monthly income has started to return to normal. Finance Minister Tengku Zafrul pointed out a few days ago that if the first three withdrawal plans had not been launched, KWSP would have been able to pay out 6.70% of the dividend instead of only 6.10%.
Although the withdrawal plan launched by KWSP will affect the domestic financial market to a greater or lesser extent, the withdrawal plan will nevertheless stimulate the domestic consumption and tourism sectors, especially with the fasting month of Ramadan and Eid coming up. Coupled with the opening of the country’s borders from April 1, this could also stimulate the domestic tourism industry.
