Off topic.

EPF penamaan can be done over KIOSK machine?

They need B&W.
You need to do it at the branch with the filled form:

No comment lah... Account 1 also need gomen to endorsed, what else if not gomen decide it.

This post has been edited by danielmckey: Nov 4 2020, 01:27 PM

What kind of impact will a mass withdrawal of EPF have to the fund? The discussion now with Account 1 withdrawal seems to be related to B40 members but would there be more volatility in returns with a mass withdrawal?

Previous changes have usually dealt with lowering new deposits amounts from salary/employer so the impact was insignificant. But now it is withdrawals of existing funds which I presume a large group of the population wants.

Any thoughts?

Will they look into changing the lockin period to mitigate this (from 55 years)?

I also suspect this as well. I’ll continue with the self contributions though since I can withdraw them and there are less options in the market. But this is not a good development.

For immediate effect, I think this will impact on the dividend for this year as some investments might be pulled out to fund this withdrawal. Even if it is only B40 members it still makes up a very big amount if 10k is allowed per member.

For medium term (before vaccine is administered to the mass population), I think EPF will holdback on investment and maybe make short term investments only in case CMCO again then another withdrawal allowed again as the floodgate has been opened, although unlikely.

As per the current Budget proposal....
06/11/2020 as at 17:00
EPF withdrawal
EPF contributors will be allowed to withdraw RM500 per month from their first account, up to a total of RM6000 a year.

17:01
This withdrawal is to assist EPF members who lost their jobs, and is expected to lighten the financial burden of 600,000 affected members. Taking into account both the i-Lestari initiative as well as the Account 1 withdrawal facility, the total of cash withdrawal is up to RM12,000. It is projected that the total payment for Account 1 withdrawals will involve RM4bil. Eligible members can apply starting January 2021.

17:13
Lower EPF contributions
The EPF contribution rate for workers will be reduced from 11% to 9% starting January 2021, for 12 months, worth a total of RM9.3bil.

https://www.thestar.com.my/news/nation/2020...t-2021-liveblog

This post has been edited by MUM: Nov 6 2020, 05:14 PM

Hmm, I am not sure if EPFs investment team takes into account the Malaysian health setting - CMCO etc. Their target is returns, global markets are moving in their favour as well as their bond holdings must have increased in value due to interest rate climate. Their local (sizeable) allocation will likely continue to stagnate due to uncertainty.

I am more concern that a larger number of withdrawals will cause them to pare down long term bondholdings where they are sitting on nice yields.

I would think withdrawal would improve returns as epf has 36% in fixed income and 3% in money markets. The capital return of bonds have already been realized with the interest rate decrease. The withdrawal will come from the money market and bond portions. So end up better returns for the people who are still in.

The capital appreciation will be realized but the yields are over a long period (for these long term bonds). I assume they need to keep ratios in all the different asset classes so will need to sell of bonds that hold good long term yield for the withdrawals. It doesn’t seem likely to get similar yields in the near future. They can’t really tap their money market holdings alone to cover withdrawals.

The dividend are paid on bond yields (cashflow) so it shouldn’t really matter about the capital appreciation anyway, it is paper profits that will give a one off profit when sold but weaken the bond yield profile over a long period.

Do you disagree? Interesting to see what comes of this.

This post has been edited by TheEquatorian: Nov 7 2020, 11:22 PM

as per 9 Nov 2020 article,

Tengku Zafrul said Malaysia needed to think of a long-term solution for EPF contributors because there were structural issues that the country must tackle in the medium to long term.

According to EPF data, 32 per cent of total contributors only have an average balance of RM1,000 in Account 1, while another 10 per cent of the contributors have an average balance of RM5,000.

"Hence, 42 per cent of EPF contributors have a balance of RM5,000 and below. This is one of the structural issues that we need to overcome."


https://www.msn.com/en-my/news/national/epf...l?ocid=msedgntp

just hope that this data of (32% or 42%) are data that included those qualified to withdraw under Budget 2021: RM500 monthly withdrawal from EPF Account 1 for 12 months
if NOT inclusive, than it will be lower again.

with the EPF contributions are distributed to 70% in Account 1 and 30% in Account 2
if 32 per cent of total contributors only have an average balance of RM1,000 in Account 1, while another 10 per cent of the contributors have an average balance of RM5,000.....
ever wonder how much average they have in Account 2 for withdrawal and number qualified to withdraw from the earlier i lestari program?
(if average in a/c 1 is 5k is 70%, then the average is 2k in a/c 2?)

"The i-Lestari facility allows EPF members aged 55 and below to withdraw between RM50 to RM500 a month for 12 months through March 31, 2021, subject to available funds in the members' own EPF Account 2."
https://www.nst.com.my/news/nation/2020/06/...0%20per%20month.

ever wonder how much are the total average balance that are in the EPF accounts of those 32% or 42% after all these withdrawals?

This post has been edited by yklooi: Nov 9 2020, 09:46 AM

Report says Account 1.so it should exclude ilestari.

realised that, hence amended my earlier post

what will the numbers be if after taking into consideration of the "allowed" withdrawal from a/c 1 as proposed in Budget 2021?

500 x12 = 6000

So if u have only 5k in Acc 1. Then it's zero by Oct.

OMG
in that case, then there is a possibility of 42 per cent of EPF contributors will have a balance of RM5,000 0 and below 0 in their a/c 1

This is sad but if you're in their shoes, you may have different mindsets: I can't even survive now, how am I going to survive till retirement?

EPF will be coming out with the conditions of withdrawal soon. Will need to see what the conditions are. Govt is pushing for a more easier withdrawal.

Unfortunately, this policy is forced onto epf by the govt.

Expect next 15 years onwards, this country will face a retirement funding crisis.

Is it because they dont take into account money which is taken out from Acct1 for investment. Maybe majority of the money is taken out from EPF for investment and they only see what is left inside EPF only thats why so little..

If there is no need, please do not withdraw from EPF.