EPF’s new withdrawal scheme
welcomed
The Star 12/4/2006
PETALING JAYA: The annual withdrawal of funds from Account II of the
Employees’ Provident Fund (EPF) to reduce housing loans means savings for
consumers and a boost to the economy, say financial and property experts.
“It makes sense for contributors to take out their money because they only
earn 4% to 5% interest from EPF when the loan interest rate is 7% to 8%.
“This means net savings for consumers,” said Singular Asset Management chief
investment officer Teoh Kok Lin Teoh.
He said contributors now have a choice of withdrawing their savings annually
or every three years.
On Monday, EPF announced that contributors could now withdraw savings from
their Account II yearly to reduce or settle housing loans.
Real Estate and Housing Developers’ Association Malaysia (Rehda) president
Datuk Jeffrey Ng agreed it would boost the property market. He said
contributors would be able to pay off their loans faster.
National House Buyers Association secretary general Chang Kim Loong agreed
it would reduce house buyers’ debts.
