More Than 50,000 Apply For EPF FSA2

A total of 59,230 contributors have applied for Employees' Provident Fund's (EPF) Account 2 Support Facility (FSA2) as of yesterday since it opened on 7th April, with only 27,705 eligible, said Deputy Finance Minister Datuk Seri Ahmad Maslan.

"Those who are not eligible are because they are under 40 years old, as we have said that only those aged 40 and above are eligible," he told the media after visiting the Accountant-General's Department (JANM) here.

FSA2 is a facility that aims to help EPF members obtain personal financing from banking institutions. So far, two banks are participating in FSA2 namely MBSB and Bank Simpanan Nasional.

FSA2 involves a maximum financing of RM50,000 (subject to EPF Account 2 balance) and a repayment period of up to 10 years.

Among the stipulated conditions is that the applicant must have a minimum amount of RM3,000 in EPF Account 2.

Ahmad said that although the government does not allow the withdrawal of EPF even though there is a suggestion that it be given to members who are really desperate as the withdrawal of EPF is only allowed for the purposes of housing, education, health, certain protection plans such as chronic illness and a maximum of RM3,000 to cover Hajj cost.

"We don't say that if we don't allow it, then there will be no withdrawal from EPF. The EPF funds can still be withdrawn. There are five areas for a member to withdraw from EPF Account 2 while Account 1 is not allowed to be withdrawn because it is specifically for retirement purposes," he said.

Titiwangsa MP Datuk Seri Johari Abdul Ghani was previously reported to have said that it is easier to allow people to withdraw their EPF savings than to use them as collateral for loan applications.

Meanwhile, Ahmad said as of 31st December, the total assets and liabilities that have been accounted for in the Federal Government's Integrated Financial Management and Accounting System amounted to RM2.85 trillion.

He said JANM is currently still researching and looking for federal government assets in the form of investments, property and various other forms.

"This year we may get another RM30 billion in assets to be accounted for," he said, the majority of the assets being in the country.