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Please read the comment received this afternoon @ 12:58pm at the bottom of this article (click on the comment section) from Nik Affendi, the Senior Manager, EPF Public Relations. In short, the rumours and the emails circulated on cyber space is UNTRUE!!


Please delete immediately any such emails if you received and spread the TRUTH to all.
To Nik, thank you for the quick & swift respond.

Thank you



There was an email circulating on cyber space of an EPF (Employees Provident Fund or KWSP) scam involving Account II. Apparently, the government in the budget 2008 had allowed the withdraw of Account II to service the monthly housing loan repayment to ease the burden of the public. None of those that I knew had ever withdrew any funds from their EPF Account II for this purpose but I wonder if there is any truth in the email circulated.

According to the email, you only need to provide EPF, the housing loan & the installment details from your bank and the bank a/c number that EPF needed to bank the monthly withdrawal into. EPF will approve the application based on the available amount in the A/C II and compute the withdrawal period by dividing the approved amount with the monthly installment amount.
The application process takes approximately a month and the monthly payout will be paid promptly into the designated bank account!

Everything appeared to be smooth and simple but this is how the so-called alleged scam work. 

Assuming there is a RM100,000 in the A/C II and the housing loan monthly installment is RM2000/mth.

EPF will approve the application of withdrawal from the A/C II of RM100,000 and bank-in (at your designated account) the  RM2000/mth for the next 50mths. Everything appears to be in order BUT....... What EPF did not highlight is that when the application was approved, the TOTAL AMT from account II (RM100,000) was removed!! It appears to be transferred to an unknown a/c to effect the monthly payment from therein.The impact to the member are as follows : 

1. You just lost all the balance RM100,000 from your A/C II. Assuming the KWSP Dividend is 4%, you will lose  RM4,000 in dividend during the 1st year. Based on the above example you will lose  RM10,000 over the 50 months period! 

2. There is no statement of account for the amount approved vs. amount paid, hence you would need  to keep the monthly payment voucher to reconcile against the approved  amount over the 50months period to ensure there is no missing amount! 

Assuming there are 100,000 members who innocently applied for the EPF Account II withdrawal to pay their monthly housing loan and based  on the above example, EPF would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that ' s RM1 BILLION) over the period! 

Furthermore, if you discovered the removal of the whole sum in the Account II, and intend to stop the plan, EPF would not  allow any cancellation of the plan until for at least a minimum of 1 year. That would mean, once the application is approved, based on the above example, you would have lost RM4,000. 100,000 members would have lost 100,000 X RM4,000 = RM400,000,000 (RM400 MILLION)  in One Year!!! 

I hope this is not true and part of the opposition's dirty technique to discredit the Government in which case, the government should explain the mechanism to the public to avoid any speculations and rumours but if its true, if you are affected, please raise the issue with your local MP to bring it up in Parliament.

All the best....



  1. The above email is untrue. I managed to find a press statement regarding this issue in October 2008 from EPF themselves. I think we should not spread rumors and false statement like this as it will cause unnecessary panic to others. Stop the rumors and spread this response to all ur frens.


    The Employees Provident Fund (EPF) would like to state that members’ savings that have been kept aside in a separate account for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends accordingly. This statement comes in response to recent emails and blogs that state the EPF does not pay dividends on the said amount.

    When a member’s application for Housing Loan Monthly Instalment Withdrawal is approved, the total amount of savings that will be taken out from Account 2 for the purpose of this withdrawal will be put aside in another account. The reason for this is to separate the amount from the main account, as funds allocated for this withdrawal cannot be used for other withdrawals from Account 2. In addition, it serves to facilitate as well as monitor the monthly payments.

    The EPF would like to reiterate any savings that are still with the EPF will continue to earn dividends annually up until the member reaches the age of 75. Accordingly, the savings that have been kept aside and are committed for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends for the year. The dividends on this amount will be credited into Account 2 after dividend for the year is declared.

    In any case, the Housing Loan Monthly Instalment Withdrawal was introduced in January 2008 and as dividend for 2008 is yet to be declared, there is no issue of the EPF not paying dividends on the said amount.

    We hope that this statement will put to rest any confusion regarding this issue. The EPF wishes to assure its members that it is committed to protecting members’ interests and enhancing the value of their savings.

    Senior Manager, Public Relations
    Employees Provident Fund

    Date: 30 October 2008

  2. Dear Nik Affendi,

    Thank you for your clarification. I will update the blog accordingly to share your respond with others.

    Unfortunately, the email has been floating and still is floating on cyberspace. I have received a few of this email in the past and is still receiving the same emails.

    thank you again.

  3. I am actually using account II to pay my installments, lets see when the dividend is announced, will check whether they do pay or not. But as far as I know, they did take out the amount applied for form my account II. So I hope the email is untrue....


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