Determinants of Special EPF Withdrawals among Malaysian Employees Amidst the COVID-19 Pandemic
In response to the COVID-19 pandemic, Malaysia has implemented various financial relief measures to support those adversely affected by the crisis. These measures primarily target individuals who have experienced job loss or a reduction in wage due to the pandemic. One of the options available to...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
RSIS International
2024
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/44785/1/Determinants%20of%20Special%20EPF.pdf http://ir.unimas.my/id/eprint/44785/ https://rsisinternational.org/journals/ijriss/articles/determinants-of-special-epf-withdrawals-among-malaysian-employees-amidst-the-covid-19-pandemic/ https://dx.doi.org/10.47772/IJRISS.2024.804224 |
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| Summary: | In response to the COVID-19 pandemic, Malaysia has implemented various financial relief measures to
support those adversely affected by the crisis. These measures primarily target individuals who have
experienced job loss or a reduction in wage due to the pandemic. One of the options available to individuals
was the premature withdrawal from their social security account, specifically the Employees Provident Fund
(EPF) account, through various programs such as i-Lestari, i-Sinar, and in 2021, i-Citra, and also
"Pengeluaran Khas," in 2022, even though such withdrawals are said to be potentially risky. Conducting a
qualitative method by using an in-depth interview, this paper determines the factors associated with
employees’ EPF withdrawals during the COVID-19 pandemic in Malaysia. Therefore, this paper identifies
the factors of withdrawals and the relationship between characteristics such as financial hardship,
precautionary demand for cash, uncertainty over finances, and immediate financial obligations and uses it as
a guideline for building a framework to enhance the current social security system in Malaysia and manage
future unforeseen crises. Based on the findings, this study proposes a range of policies based on the
identified factors of early EPF withdrawals. |
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