Finance Ministry confirms no impact on existing EPF withdrawal rights amid new proposal
She said the new structure, if implemented, would only apply to new EPF contributors, while existing members could voluntarily switch to the new system.
Lim explained that the EPF's proposed account restructuring was aimed at ensuring contributors have a more stable and sustainable income stream after retirement.
"Under the proposal, members' savings would be divided into two components: one portion that can be withdrawn flexibly at any time, and another that would be paid out gradually over time until fully utilised," she said in a Facebook post on Saturday (2 Aug),
Lim said that this was still an early-stage proposal and had not been finalised.
She stated that the Madani government remains committed to listening to public feedback and would conduct thorough engagement with stakeholders before making any decisions.
'The objective is to help Malaysians manage their retirement savings in a more structured, fair and sustainable manner,' she said.
Previously, the EPF said that any decision regarding the introduction of a monthly pension-style payout scheme would be made only after consultations with key stakeholders and evaluation of the long-term implications.
The proposal, which forms part of the government's initiatives under the 13th Malaysia Plan (13MP), was still under review. In the interim, the EPF has confirmed that existing rules and withdrawal mechanisms remain unchanged.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
FBM KLCI rises on Wall St rebound
KUALA LUMPUR: The momentum of Wall Street's rebound spilled over on to the global equities at Tuesday's open, giving the sluggish domestic market some upward lift. At 9am, the benchmark FBM KLCI was up 1.65 points to 1,540.64, still tightly wound around a consolidation channel as investors awaited fresh catalysts. According to TA Securities, the overnight rally on Wall Street should cushion the lack-luster local market today, but the undertone remains cautious as investors refrain from trading commitments in the absence of market direction. "Immediate index support remains at 1,490, with stronger support found at 1,465 followed by 1,444. Immediate resistance stays at 1,564 with next upside hurdles seen at the recent high of 1,586, followed by 1,610 ahead," it said in a commentary. Malacca Securities said it favoured the technology sector as the OPR cut and anticipated Federal Reserve rate easing are expected to lower borrowing costs for technology companies. "Malaysian tech players remain exempted from US tariffs, with our top picks including Frontken, Vitrox and EG," it said in a note. It added that Sunlogy's rally yesterday may spur spillover interest in other solar-related counters, supported by positive developments in the renewable energy space, including NETR and the 13MP. Lastly, the research firm said investors may shift their attention to REITs for domestic-focused exposure. On the market today, Maybank rose nine sen to RM9.63 and Hong Leong Bank jumped eight sen to RM18.98. Kelington jumped 17 sen to RM4.37 on reports the company is in talks with a client for a semiconductor hook-up project at a wafer fabrication plant in Dresden, Germany, potentially worth up to EUR50mil. Meanwhile, Inari Amertron rose two sen to RM3.01. Of actives, NexG dropped 0.5 sen to 53 sen, Pharmaniaga gained 0.5 sen to 18.5 sen and Top Glove fell 0.5 sen to 65 sen.
The Sun
an hour ago
- The Sun
Call for smarter transport push under 13MP
PETALING JAYA: Malaysia's 13th Malaysia Plan (13MP) outlines an ambitious vision to transform the nation's transport landscape, but experts warn that success will take more than just laying down the roads and rail lines. They stress the need for strong supporting infrastructure, safety-led design and long-term resilience in the face of climate change and systemic inefficiencies. Universiti Putra Malaysia (UPM) Road Safety Research Centre head Assoc Prof Dr Law Teik Hua highlighted ongoing gaps in highway safety measures. While road upgrades are welcomed, he said the 13MP must go beyond cosmetic fixes. 'The strategy needs tried-and-tested design features like intelligent transport systems for real-time hazard alerts, automated speed enforcement and continuous median barriers. 'Rural roads, which account for a disproportionate number of fatalities, require full safety audits and tailored interventions at known black spots.' Law also raised red flags over how transit-oriented development (TOD) is being handled – initiatives that aim to increase population density around transit hubs. 'There needs to be more in the plan about mixed-income housing, street design that prioritises pedestrians and seamless multimodal integration. Many TOD projects today seem to prioritise commercial gains over community needs. One could end up with neighbourhoods next to stations, but still car-dependent.' He acknowledged the plan's emphasis on rail expansion, TOD, freight diversification and other forward-looking ideas, but warned that execution hurdles remain. 'If done right, shifting more people and cargo to rail could ease congestion and reduce road safety risks. But the strategy downplays the need for parallel investment in critical supporting infrastructure.' He singled out the state of Malaysia's rail freight network as a major blind spot. Although the 13MP targets a 30% freight modal share by 2030, Law said issues – such as incompatible rail gauges, limited terminal access and inflexible scheduling – persist. 'The vision would be far stronger with concrete plans to standardise intermodal gear, build transshipment hubs near industrial zones and encourage private companies to get involved in logistics innovation.' Without these, he cautioned, the modal shift target may not be attainable. UPM Department of Civil Engineering head and transport expert Assoc Prof Dr Fauzan Mohd Jakarni echoed similar concerns, but praised the 13MP for its inclusive, people-first approach. He said the plan signals a welcome pivot from glamour projects to real-world needs. 'It focuses on who actually needs better transport, pinpoints real gaps, and puts meaningful access ahead of flashy expansion. The rural road agenda is especially promising for remote communities. For isolated villages, this could mean quicker emergency aid, better access to schools and clinics and more consistent links to local markets.' Still, Fauzan said rural road projects face steep technical obstacles, especially in flood-prone and rugged areas. Drainage, he added, is often the 'silent killer' of rural roads, weakening foundations and speeding up wear and tear. More critically, Fauzan urged policymakers to stop sidelining maintenance. 'Maintenance isn't just a support act, it's the main character in any road's life story. You can build the best road in the world, but without regular upkeep, even highways become obstacle courses.' He said maintenance remains the most neglected aspect in national transport planning. 'Unfortunately, in national planning, maintenance often takes a back seat to new construction. It's less visible, less politically attractive and therefore, easier to delay. But letting small cracks fester means costlier repairs later.' In road engineering, he added that a minor fix today could save millions tomorrow and more importantly, it keeps people moving safely and without disruption. He called for a mindset shift to treat road upkeep as an essential service and not just a post-disaster response. Both experts agree that while the 13MP signals a step away from mega-project mindsets, the true test lies in implementation, integration and above all, accountability.
New Straits Times
an hour ago
- New Straits Times
Over 90pct of insurance premium adjustments under 10pct, says Finance Ministry
KUALA LUMPUR: More than 90 per cent of revised insurance policies saw premium increases of less than 10 per cent as of April 30, the Finance Ministry said. The ministry said that over 200,000 policies had benefited from deferred premium adjustments, while more than 14,000 lapsed policies were reinstated. "The adjustment of Medical and Health Insurance and Takaful (MHIT) premium rates is symptomatic of the broader issue of medical cost inflation, which is the main contributing factor. "This inflation is driven by factors such as the rise in non-communicable diseases, investment costs in cutting-edge medical technologies and the largely unchecked cost of providing and utilising healthcare services," he said. It said this in a written reply to Pang Hok Liong, addressing concerns over the government's action on rising private medical insurance premiums, which many Malaysians can no longer afford, forcing some to cancel their policies. The ministry attributed the spike in MHIT premiums in 2024 to a surge in claims following the Covid-19 pandemic, compounded by a delay in premium rate adjustments by insurance and takaful operators during the pandemic. In a separate response to Sim Tze Tzin (PH–Bayan Baru), the ministry said stakeholder engagement is ongoing to consider all views on the development of a basic MHIT product under the Reset strategy, aimed at tackling medical cost inflation and expanding access to affordable coverage. "While the basic MHIT product aims to enable more individuals to obtain affordable insurance coverage, the decision to purchase this product remains voluntary and subject to individual choice. "As with other insurance and takaful products, policyholders may pay the basic MHIT premiums using any financial resources at their disposal," it said. While contributors may use their Employees Provident Fund Sejahtera Account, previously known as Account 2 to pay for premiums, the ministry said there is no compulsion to do so. It said the product's framework has yet to be finalised, with the concept expected to be completed by December and implementation targeted by end-2026.
