MIDTERM/ASSIGNMENT 3 (i-Sinar Scheme)

    The Employees Provident Fund expanded the criteria for withdrawals from the i-Sinar facility. The purpose of this is to ease financial burden of members that are affected by this Covid-19 pandemic. i-Sinar was formulated using extensive deliberation and consultation with key stakeholders from the public and private sectors, including the Finance Ministry.

    Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the EPF allocated RM 70 billion for the initiative, allowing about eight million subscribers to withdraw maximum amount of up to RM 10,000 or RM 60,000 from Accoutn 1. He also made the announcement during the Budget 2021 debate in Parliament that Sinar facility will be expanded to include all who's income were affected by Covid-19. 

    Before this the facility was only open to members who have lost their jobs , give no-pay leave or have no other source of income. 

    As we know, EPF is one of the world's oldest and largest retirement funds. It is now refining the i-Sinar withdrawal facility. From the initial guideline, affected depositors are allowed to apply since mid-December 2020. It is said eligible members will have access to 10% of their savings in Account 1, with a minimum balance of RM 100.

    Those with savings of RM 90,000 and below in Account 1, they can  have access to any amount up to RM 9,000. The amount advanced will stumble over six months with an increased first advanced of up to RM 4000. Those with saving above RM 90,000 in Account 1, they can also have 10% of the savings but capped at RM 60,000. The amount advanced will stumble over six months with an increased first advanced of up to RM 10,000.

    Depositors who wish to apply for the i-Sinar facility will need to replace the full amount advanced while future contributors will be 100% credited to Account 1 until amount advanced is replenished. 

    i-Sinar will complement other assistance programmes offered by the government and other EPF relief during this Covid-19 pandemic. Some relief offered are like the reduction of employee statutory contribution rate, i-Lestari withdrawal facility and the Employer Covid-19 Assistance Programme. 

    To me, I think this initiative can be seen as a good think. Reasons being that this initiative is able to cater the financial needs of the members. But does this have impact? EPF understands members' need to withdraw the money to survive the pandemic. However, they hope members can plan well so that they can aid their current needs and this can help minimize the impact of their retirement.