Malaysia's Employees Provident Fund (EPF) has expanded the scope of its i-Sinar facility to cover active members who have lost their jobs, been given no-pay leave, or have no other source of income. As a result, it will now benefit two million eligible members, with a total estimated value of RM14bn to be made available.
Members who are eligible for this can start submitting applications from December 2020, and the funds will be credited into their bank accounts by the end of the month following their application; the first batch of fund crediting will begin in January 2021, and advances will be made over a period of six months from the first date of crediting.
Details on access and requirements for Account 1 under the i-Sinar facility
As stated by EPF, eligible members will generally have access to 10% of their savings in Account 1, subject to a minimum balance of RM100.
- Members with RM90,000 and below in Account 1 will have access to up to RM9,000. The amount advanced will be staggered over a period of six months, with an increased first advance of up to RM4,000.
- Members with above RM90,000 in Account 1 will have access to up to 10% of their savings in the Account. However, the maximum total amount allowed to be advanced in this case would be RM60,000. At the same time, the advanced amount will be staggered over a period of six months, with an increased first advance of up to RM10,000.
Members who opt to apply for the i-Sinar faciliity will be required to replace the full amount advanced; and 100% of all all future contributions will be credited into Account 1 until the advanced amount is replenished. Following that, the contribution amounts will revert to 70% for Account 1 and 20% for Account 2.
To determine the right amount to be applied under i-Sinar and ensure sustainability during the crisis, members are strongly urged to first seek financial advice from EPF’s Retirement Advisory Services (RAS) and/or the Credit Counselling and Debt Management Agency (AKPK).
This update was also shared by Tengku Zafrul Aziz, Minister of Finance, Malaysia:;