What three steps can EPF take to recover withdrawn funds?

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EPF Can Replenish Withdrawn Funds Within One to Two Years Through Several Measures

The Employees Provident Fund (EPF) possesses the capacity to recover funds withdrawn by contributors within a timeframe of one to two years post-Covid-19 crisis, through a combination of government support, strategic asset management, and potential adjustments to contribution and dividend policies. These proposed measures aim to ensure the long-term financial health of the fund while addressing the immediate needs of its members.
Government Purchase of Government Bonds

A key mechanism for EPF to regain liquidity involves the government purchasing government bonds held by the fund. With approximately 49% of EPF's substantial RM940 billion in assets invested in government bonds, Bank Negara Malaysia (BNM) could acquire these bonds. This action would facilitate the disposal of these assets without causing significant adverse impacts on the local bond market, thereby providing EPF with necessary funds.
Allocation of Lucrative Projects and Increased Contributions

The government could also bolster EPF's financial standing by assigning more profitable projects to the fund. Furthermore, once the economic conditions improve following the Covid-19 pandemic, there is a proposal to increase the contribution rates for both employers and employees. Such an increase would directly replenish EPF's coffers and accelerate the recovery of withdrawn amounts.
Restructuring Dividend Payouts

Another proposed strategy focuses on modifying the dividend payment structure. Implementing a multi-tiered dividend system, where contributors with lower savings receive higher dividend rates, would ensure a more equitable distribution of EPF's profits. This approach prioritises those with less accumulated savings, helping them to rebuild their funds more effectively.

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What three steps can EPF take to recover withdrawn funds?

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