Yesterday, during his winding-up speech in the Dewan Rakyat, Finance Minister Tengku Zafrul Aziz said eight million EPF contributors would be able to withdraw up to RM10,000 each – a total of RM70 billion – in 2021 from their savings.

In a statement on Facebook, Wong said the ministry must clarify and change the plans regarding the special EPF Covid-19 withdrawals to be more reasonable as he believed the current plan would have negative market implications and put unnecessary strain on the EPF to pay the targeted 6% yearly dividend.

He called the proposal “overkill” and urged the finance minister to “scale down”.

“The finance ministry must abandon this super populist idea.

“Allowing the most desperate two million depositors from the B40 and M40 to withdraw their pensions is acceptable as a policy, but to allow a floodgate of withdrawals to eight million depositors, rich and poor, is just grossly irresponsible,” he said.

Wong estimated that for 2021, the EPF would have a lower than normal net inflow of RM20 billion.

He said if the RM70 billion Tengku Zafrul projected to be withdrawn was correct, then the fund would need to raise an additional RM50 billion to meet the demand.

Additionally, as the EPF typically buys 25% of the government’s sukuks and bonds, Wong said the total amount the EPF would need to raise would come to RM71 billion.

“Where is EPF going to find an additional RM71 billion next year? What assets and shares are they going to sell? Is it wise to sell assets and blue chip shares in a depressed market?”