i-Citra Will Withdraw From Account 2 First

Employees Provident Fund (EPF) says that the i-Citra service is intended for members to withdraw their savings primarily from Account 2. The facility is already prepared for members to access it for particular needs such as paying for:

• Education fees,
• Medical expenses, 
• and home loans.

i-Citra will prioritise account 2

EPF's CEO Datuk Seri Amir Hamzah Azizan says that all members under 55 can apply for i-Citra. i-Citra service allows members to withdraw up to RM5,000 of their savings and subject to their total combined balance in Accounts 1 and 2. 

The accepted withdrawal amount will be transferred for up to five months, with a fixed monthly payment of RM1,000 every month, subject to savings balance and a minimum of RM50 in the account. 

He says that if the amount in Account 2 is not enough, EPF will allow depositors to utilise Account 1.

EPF's i-Citra is expected to pay out RM1,000 every month.

Balancing between retirement savings and helping people

He says that the EPF is trying to balance helping people and ensuring they also have enough savings for retirement. 

The i-Citra service is a continuation of the previous versions known as i-Lestari and i-Sinar. During both of these initiatives, Amir Hamzah says EPF has paid out a total of RM80 billion. 

He says that the EPF is mandated to help Malaysians after their retirement, but it also understands that the current pandemic is an extraordinary situation. He adds that EPF is trying to find a means for people, within reasons, to access their savings. 

Amir Hamzah also says the key is to ensure that the EPF does not lose the mandate of helping its members with their retirement savings. 

He says that if EPF allows its members to drain their total savings, it will become an intractable problem for Malaysia. 

"That is the balancing act the EPF has to do," he said.

On Monday, EPF says members can start applying for i-Citra via its online portal at icitra.kwsp.gov.my from July 15, 2021. EPF expects the first payment to be transferred to member accounts in August 2021.

Started from January 1, 2007, a member's EPF savings account consists of Accounts 1 and 2 that differ by their share of savings and withdrawal flexibilities.

Account 1 holds 70% of EPF members' monthly contribution, and Account 2 holds 30%. 

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