Determinants of special EPF withdrawals among Malaysian employees amidst the COVID-19 pandemic

Claudia Jiton and Dzurizah Ibrahim (2024) Determinants of special EPF withdrawals among Malaysian employees amidst the COVID-19 pandemic. International Journal of Research and Innovation in Social Science, 8. pp. 1-12. ISSN 2454-6186

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Abstract

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.

Item Type:	Article
Keyword:	factors; employees’ provident fund; social security; qualitative research; Malaysia
Subjects:	H Social Sciences > HC Economic history and conditions > HC10-1085 Economic history and conditions > HC94-1085 By region or country H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD7088-7252 Social insurance. Social security. Pension
Department:	FACULTY > Faculty of Social Sciences and Humanities
Depositing User:	ABDULLAH BIN SABUDIN -
Date Deposited:	07 Feb 2025 11:43
Last Modified:	07 Feb 2025 11:43
URI:	https://eprints.ums.edu.my/id/eprint/42821

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