Latest news with #FlexibleAccount
The Star
2 days ago
- Business
- The Star
PM: PETRONAS on strategic moves to adapt to global uncertainties
KUALA LUMPUR: PETRONAS' strategic decision to rationalise its asset portfolio is driven by the need to optimise investments, adapt to global market uncertainties and ensure the company remains competitive and sustainable in the long term, says Datuk Seri Anwar Ibrahim. The Prime Minister said that being among the Top 10 in its field globally, PETRONAS must consider long-term perspectives, given the uncertainties in the world of the oil and gas market. 'PETRONAS is making calculated decisions to release older assets and reinvest in new ventures to ensure maximum resource utilisation,' he said during the Minister Question Time at the Dewan Rakyat. Anwar noted that PETRONAS makes these decisions with commercial prudence and without political interference to uphold its esteemed reputation. Anwar acknowledged that over 5,000 workers might be affected in streamlining operations but said that comprehensive support measures are in place to assist them. 'We are ensuring those affected receive training for new opportunities, with guarantees such as a year-long salary,' he said. Concerning PETRONAS' strategy on Liquefied Natural Gas (LNG) imports and how it would maintain its profit portfolio, the Prime Minister explained that PETRONAS imports only what is necessary. 'Our import strategy is aligned with maintaining a competitive and commercially viable portfolio. PETRONAS balances imports and exports to maintain profitability,' he said. The Prime Minister also informed the Dewan Rakyat that over 4.6 million members of the Employees Provident Fund (EPF) have made withdrawals from the Flexible Account since May 2024, with total withdrawals amounting to RM14.79bil as of June 30. 'The remaining balance in the Flexible Balance Account stands at RM10.16bil,' he said when asked whether the government will allow a special EPF withdrawal in 2025 by moving 30% from Account 1 to Account 3.
The Sun
2 days ago
- Business
- The Sun
RM14 billion withdrawn from EPF Account 3 since last year
PETALING JAYA: Since the launch of the EPF Flexible Account (Account 3) in May 2024, 4.63 million members have withdrawn a total of RM14.79 billion, said Prime Minister Datuk Seri Anwar Ibrahim. He said the amount represents 35.1% of the fund's 13.2 million members under the age of 55 as of June. He added that the current total balance in Account 3 stands at RM10.16 billion. 'Previous EPF special withdrawals, particularly from Account 1, were temporary measures to address the exceptional circumstances of the Covid-19 pandemic. 'The EPF's core mandate as a social protection institution is to ensure adequate retirement savings to support members in old age,' he said in a written reply to Parliament. He was responding to Datuk Seri Dr Shahidan Kassim (PN–Arau), who asked about the possibility of allowing 30% of Retirement Account (Account 1) savings to be transferred into Account 3 to help low-income citizens cope with rising living costs. Anwar, who is also Finance minister, said withdrawals from Account 1 would contradict the EPF's role as trustee of retirement savings, and are inconsistent with international standards, which recommend providing nine fundamental branches of social protection to guard against vulnerabilities at various life stages, including old age. '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 contribution ratios of 75%, 15% and 10% respectively. 'Account 1 is dedicated to retirement savings, Account 2 allows pre-retirement withdrawals for education, healthcare and housing while Account 3 enables members to access savings at any time, particularly in emergencies.' Anwar said EPF savings, particularly in Account 1, are intended for retirement and are not a long-term solution to cost-of-living pressures or temporary employment issues. He said the government has introduced various forms of assistance, including direct cash aid, targeted subsidies and special incentives to ease the people's burden and safeguard their well-being. In a separate reply to Datuk Dr Alias Razak (PN–Kuala Nerus) on the use of EPF Account 2 savings for health insurance premiums, Anwar said the government, through Bank Negara Malaysia, the Health Ministry and the Finance Ministry, has launched the 'Reset' strategy to address rising healthcare costs and private insurance premiums. 'One of Reset's key pillars involves improving Medical and Health Insurance and Takaful (MHIT) by developing basic products that offer more sustainable and stable premiums in the long term. 'The initiative also aims to help users better understand and choose their MHIT coverage. The revamped MHIT programme has three main goals – to provide broad, affordable protection for major healthcare costs, use private healthcare funding efficiently and promote value-based health outcomes.' He said engagement sessions with key stakeholders are ongoing to ensure that all views on MHIT product design are considered and aligned with affordability and long-term sustainability principles. 'However, the government emphasises that purchasing the basic MHIT product will be voluntary and based on individual choice. As with other insurance and takaful products, policyholders are expected to pay MHIT premiums from any financial source they have. 'Using EPF Account 2 funds is just one of the options available to members to purchase MHIT coverage.' Anwar said once the basic MHIT policy is finalised, the EPF is prepared to enhance its i-Lindung facility to allow the use of Account 2 funds for purchasing the product. He added that the structure and design of the MHIT product are still being finalised, with the concept expected to be completed by December and implementation targeted for the end of 2026.
New Straits Times
3 days ago
- Business
- New Straits Times
Anwar: RM14.79bil withdrawn from EPF's Flexible Account since May 2024
KUALA LUMPUR: A total of 4.63 million Employees Provident Fund (EPF) members have made withdrawals through the Flexible Account (Account 3), amounting to RM14.79 billion since its introduction in May 2024, the Dewan Rakyat was told. 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.
The Star
3 days ago
- Business
- The Star
RM14.79bil withdrawn from EPF Flexible Account since May 2024, says Anwar
KUALA LUMPUR: More than 4.6 million Employees Provident Fund (EPF) members have withdrawn from the Flexible Account since May 2024, says Prime Minister Datuk Seri Anwar Ibrahim. He added that the total withdrawals reached RM14.79bil as of June 30 and said that the figure represents 35.1% of the 13.2 million EPF members under the age of 55. 'The remaining balance in the Flexible Account stands at RM10.16bil,' he said in a written reply to Datuk Seri Shahidan Kassim (PN–Arau). Shahidan asked whether the Government will allow a special EPF withdrawal in 2025 by moving 30% from Account 1 to Account 3. Anwar said EPF savings, particularly Account 1, are for retirement and are not a long‑term solution to cost of living or employment issues. He added that the Government has introduced direct cash aid, targeted subsidies, and special incentives to ease burdens and safeguard well‑being. Anwar then said past special withdrawals, including from Account 1, were temporary measures during the Covid‑19 pandemic. He added that such withdrawals are inconsistent with EPF's mandate as trustee of retirement savings and with international social protection standards.
