Thanks a lot, Teh and Steven for valuable input.
Another EPF topic, which is more of our interest as a investor is Withdrawal from a/c I to directly invest in stock market (not for unit trust) via some local broker/investment hse. I found the withdrawal and annual mgmt fee is quite high. Nevertheless, it is still an opportunity during market crash like 2008/09 to invest in some undervlued blue chips and get handsome return when market recover. What is you guys opinion?

Hi CP Teh,
First, i appreciate your effort to bring up this issue as most of the readers, i think, is a KWSP member.
My housing loan withdrawal from EPF a/c II was approved in 2010 and is currently getting monthly transfer into my bank a/c.
What I can tell you is ALL are NOT true.
I am not sure who is writing this but I am sure he/she is not currently getting monthly hse loan withdrawal from EPF.
1st, the withdrawn amount is actually transfered to a seperate a/c and is getting annual dividend like what we get in a/c II. In the annual and current statement, this seperate a/c is just below the a/c II. The total dividend received is sum from a/c I + a/c II + this hse loan a/c.
2nd, there is an official statement for this seperate a/c, clearly stated initial amount, monthly progressive withdrawal and YTD balance.
I am using KWSP i-akaun and is tracking monthly transaction as well as the annual dividend credited, everything is alright. One thing surprise me , I received the similar chain email 2 yrs ago and today it is still spreading. I remember, few yrs back it was a hot topic and EPF's director had a press conf to clarify it. It is not convinient to disclose my statement publicly so I can send to your private email. But, please stop this chain as it is not true at all. Somebody has motive behind it.

If stock capital gain is tax free, why so worry about IRB?
Yes, I do keep transaction records but is the income tax people interested in these records?