Government declares monthly RM500 EPF withdrawals and up to 6 months deferment of PTPTN repayment

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On this 6th day of the Movement Control Order (MCO), Malaysian Prime Minister Tan Sri Muhyiddin Yassin has declared four initiatives that have been decided by the government. These initiatives came out after a meeting by the Malaysian cabinet on how to deal with the economic situation that is deteriorating during the MCO.

The first initiative allows all Employees Provident Fund (EPF) members to make monthly withdrawals from their Account 2. This would be limited to a maximum of RM500 per month starting from 1 April 2020, for a total duration of 12 months. The public is advised to use the monthly funds to pay for utilities and purchase groceries. In case you didn't know, you can make e-withdrawals for EPF.

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Next, the government will also be allocating RM500 million to the Ministry of Health (MoH) for its efforts in dealing with the Covid-19 situation in the country. The money is expected to be used for ventilators, ICU equipment, personal protective equipment (PPE), and other medical goods that may be required by the public medical personnel. Also, an additional RM100 million will be provided to the MoH to appoint 2000 more contract staff, with an emphasis on nurses.

Moving on, RM130 million will be allocated to state governments to help in dealing with the Covid-19 situation in the various states. This funding is expected to be used to aid hawkers and small traders who have been affected by having to close businesses due to the MCO. It will also be to assist people who have been infected by the virus, as well as their families.

Lastly, the government will allow the deferment of National Higher Education Fund Corporation (PTPTN) repayments by 3 to 6 months. This will be in effect beginning today, 23 March 2020, until 30 September 2020. In other words, you won't have to make payments to PTPTN during this period.

Besides the above, the government is working on a comprehensive Economic Stimulus Package that's set to be announced on 30 March 2020. With all that said, what are your thoughts on the initiatives announced? Let us know on our Facebook page and stay tuned to TechNave.com for more updates.