IPOH: Allowing contributors to use the funds in the Employees Provident Fund (EPF) as collateral for bank loans does not violate the EPF Act, says Prime Minister Anwar Ibrahim.
He said the matter had been discussed with the EPF and there were no obstacles to implementing it.
Anwar, who is also finance minister, said that this method could be used to help contributors in certain cases.
“There are urgent cases, for example when contributors have savings but can’t afford to pay for their children’s education fees abroad.
“We can give consideration to these cases,” he told reporters after launching the World Water Day 2023 celebration at the Indera Mulia Stadium here today.
Anwar announced in the Dewan Rakyat on Thursday that the government would introduce a system that would allow contributors in dire straits to take up loans from a bank using their EPF savings as collateral.