Winding up the debate on the 2021 budget at the policy stage in Parliament on Thursday, Finance Minister Tengku Zafrul Aziz said those who have lost their jobs or suffered pay cuts following the Covid-19 pandemic may withdraw the amount.

Sarawak MTUC secretary Andrew Lo said the government should use allocations from the budget to help the people instead of allowing them to dig into their savings, which were meant for their retirement.

“The government shouldn’t let the people touch their EPF savings. This is embarrassing,” he told FMT.

Separately, the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) said EPF contributors may face a dilemma of not having enough savings if they were allowed to take out up to RM10,000 now.

Its secretary-general, Jonathan Chai, said many people were already in financial difficulties and withdrawing a huge sum of money from their EPF savings would compound their problems when they retired.

“It is sad that the government had to succumb to pressure from MPs from its component parties to ensure that the budget is approved,” he said.

“It would have been better for the government to lend a helping hand through financial aid directly to the people, especially those in the B40 category or those whose income had been affected,” he said.