Anwar: RM14.79bil withdrawn from EPF's Flexible Account since May 2024
Finance Minister Datuk Seri Anwar Ibrahim said this represents 35.1 per cent of the total 13.2 million members under the age of 55 as of June.
"The total balance of savings in Account 3 stands at RM10.16 billion," he said in a written parliamentary reply.
He was responding to Datuk Seri Dr Shahidan Kassim (PN–Arau), who asked when the government would allow a special withdrawal by transferring 30 per cent of Retirement Account (Account 1) savings into Account 3 to help low-income citizens cope with the rising cost of living.
Commenting further, Anwar said that previous special withdrawals allowed by the EPF — particularly from Account 1 — were intended solely to address the exceptional circumstances of the Covid-19 pandemic, and were temporary.
He said the EPF's core mandate as a social protection institution is to ensure adequate retirement savings to support members' financial needs in old age.
"Besides being contrary to the mandate and role of the EPF as trustee of members' retirement savings, withdrawals from Account 1 are not aligned with international standards.
"These standards recommend that governments provide nine fundamental branches of social protection to guard against vulnerability risks throughout various life stages, with old-age risk being one of them," he said.
Anwar also explained that to balance members' long-, medium-, and short-term financial needs, the EPF restructured its accounts in May 2024 into three categories: the Retirement Account (Account 1), the Sejahtera Account (Account 2), and the Flexible Account (Account 3), with respective contribution ratios of 75 per cent, 15 per cent, and 10 per cent.
"Account 1 is dedicated to retirement savings, while Account 2 allows members to make pre-retirement withdrawals for purposes such as education, healthcare, and housing.
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