One key amendment made to Budget 2021 yesterday was the expansion of the eligibility criteria for Employees Provident Fund (EPF) Account 1 withdrawals.

The latest i-Sinar programme allows more than eight million contributors to apply to make lump sum withdrawals from their long term retirement savings as long as they can demonstrate their income had been affected by Covid-19.

Since Nov 6, when the budget speech was tabled in the Dewan Rakyat, the programme has seen three iterations, following pressure from government component party Umno.

Of EPF’s RM960 billion total assets, Finance Minister Tengku Zafrul Abdul Aziz said the withdrawal scheme will involve RM70 billion (7.3 percent).

Starting next year, EPF’s income will also shrink as...