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Surge in EPF withdrawals to pay gov't education loans
Published:  May 23, 2016 11:47 AM
Updated: May 26, 2016 9:42 AM

PARLIAMENT There is a drastic growth in Malaysians making withdrawals from their Employee Provident Fund (EPF) savings to repay government education loans.

According to a parliamentary reply, EPF received a total of 26,568 applications amounting to RM209.27 million, for the purpose of repaying loans to the National Higher Education Fund Corporation (PTPTN) in 2015.

The figure increased drastically in the first four months of 2016 with applications jumping to 33,624.

The total in savings withdrawn from January to April came to RM235.69 million.

"In 2015, EPF approved 65,787 applications totalling RM578.2 million," said Prime Minister Najib Abdul Razak in a parliamentary written reply.

He was responding to Ahmad Lai Bujang (BN-Sibuti), who asked for the number of EPF contributors who used account 2 to resolve their PTPTN loans.

"The quantum of the withdrawal is determined by the savings in Account 2, tuition fees, or the education loan, subject to the lowest amount," said Najib.
 
Payment is made directly to the depositor or the relevant institution, he added.
 

 

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