More Malaysians have renounced their citizenship and withdrew their Employees Provident Fund (EPF) savings last year compared to 2014, Malaysiakini reported.
In 2015, 2,206 people withdrew savings worth a total RM134.6 million because they were leaving the country, EPF chief executive officer Sharil Ridza Ridzuan reportedly told a press conference.
This was a 23% increase from 1,787 withdrawals in 2014, involving RM99 million in principle.
“Yes, there were a slight increase, but nothing particularly drastic (in term of withdrawals),” he was quoted as saying.
Sharil also reportedly confirmed that employees could lose up to RM20,000 to RM25,000 if they opted for the 8% EPF contribution rate.
The government allowed Malaysians to reduce their contribution from 11% to 8% in the revised Budget 2016, in order to spur spending.
“We always advise our members to keep their money invested as long as possible due to the compounding dividend effect,” Sharil was quoted as saying.
The Malaysian Insider recently reported that scandals, negative news and the weak ringgit were spurring Malaysians abroad to cash out their EPF funds.
They feared that the government would likely look towards institutions like EPF and Tabung Haji to bail out failed projects or companies.
But, opposition lawmaker Ong Kian Ming disagreed, saying the fears were unwarranted because EPF was the best government institution that managed public money.
Original article from http://www.themalaysianinsider.com/malaysia/article/more-malaysians-renounce-citizenship-withdrawing-epf-funds-says-report
