KUALA LUMPUR: Since the launch of the Employees Provident Fund’s (EPF) Flexible Account (Account 3) in May 2024, a total of 4.63 million members have withdrawn RM14.79 billion, the Dewan Rakyat was told.
Finance Minister Datuk Seri Anwar Ibrahim said this figure represents 35.1% of the 13.2 million members under the age of 55 as of June.
“As of now, the total savings balance 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% of Retirement Account (Account 1) savings into Account 3 to help low-income earners cope with the rising cost of living.
Anwar explained that past special withdrawals — particularly from Account 1 — were implemented only during the Covid-19 pandemic to address exceptional circumstances and were temporary measures.
He stressed that the EPF’s primary role as a social protection institution is to safeguard members’ retirement savings for old age.
“Allowing withdrawals from Account 1 not only goes against the EPF’s mandate as trustee of members’ retirement funds but also contravenes international standards, which emphasise nine core branches of social protection, including old-age security,” he said.
To balance members’ short-, medium-, and long-term needs, Anwar said 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 allocations of 75%, 15%, and 10% respectively.
Account 1 is strictly for retirement savings, Account 2 allows pre-retirement withdrawals for purposes such as education, healthcare, and housing, while the newly introduced Account 3 enables members to withdraw savings anytime, especially during emergencies.
