He said the government decided on this as it was aware that many people were still struggling from the after-effects of the pandemic.

“The government has agreed to allow a special withdrawal of EPF funds of up to RM10,000,” he told a press conference today.

There had been growing calls for Putrajaya to allow EPF withdrawals for those struggling to make ends meet.

Former prime minister Najib Razak had been leading the calls for the withdrawals and proposing ways the retirement fund could replenish its members’ savings.

More recently, even opposition leader Anwar Ibrahim, who had been reluctant to support the move, urged the government to allow another round of withdrawals.

Finance minister Tengku Zafrul Aziz had warned that EPF would have to sell more of its overseas assets if the government allowed another one-off withdrawal of RM10,000.

EPF members have been able to access up to RM71,000 from their retirement funds through three previous EPF withdrawal programmes, which amounted to RM101 billion.

Following this, EPF said that a total of 6.1 million members, or 48% of its members under the age of 55, now had less than RM10,000 in savings in their retirement funds.

Ismail said this was a difficult decision to make as it involved the people’s retirement savings.

He added that this withdrawal was a middle ground in balancing between the urgent needs of today and future savings.

“Although we have allowed another withdrawal, I appeal to the contributors to maintain their savings unless their situation is really urgent.

“I hope they will give it due consideration before making any withdrawal, for the sake of their future,” he said.

He said further clarification on this withdrawal will be made by the finance ministry and EPF.

He added that EPF would also announce necessary measures to address the issue of declining funds in the near future.

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