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Allowing Malaysians to use retirement savings to buy a house is risky

Oct 10, 2019

Recently, Rehda suggested for the government to increase the contribution for EPF Account 2, from 30 percent to 50 percent under Budget 2020, and allow Malaysians to directly channel that money for a house down-payment, instead of having to fork out the money first. 

It said buyers can fill in the gap in the retirement fund later on if the house is sold before retirement.

However, UTAR Economics Associate Professor Wong Chin Yoong told us that's a bad idea:

"Normally, those who withdraw EPF for houses are for own occupying, rather than for resell later. So how do you fill up the saving gap in EPF account for retirement later? Even if the house is sold later, after repaying all the debt, whatever left is more likely to be used for down-payment for new purchase. In fact, they may even need to withdraw EPF savings for second time."

He also disagreed with a proposal to extend the Home Ownership Campaign to second-hand houses, as he believes it'll worsen the overhang problem of newly built homes.

Budget 2020 will be tabled in Parliament tomorrow.

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Govt looking at making social work a recognised profession

Social work will soon become a recognised profession. 

Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail says there are plans to table laws to upgrade the status of social workers, and ensure their welfare is taken care of as well.

There are very few trained and qualifed social workers in Malaysia, at a ratio of one social worker to over 8,700 Malaysians.

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King Kong island in Melaka soon?

Melaka is planning to gazette Pulau Nangka as a sanctuary for long-tailed monkeys, amid a rise in the number of attacks on humans in the state. 

Earlier this week, a father in Alor Gajah had to run for safety into a stranger's house with his 2-year-old son, who was being attacked by the primates.