KUALA LUMPUR: Existing Employees Provident Fund (EPF) contributors will not be compelled to adopt the proposed monthly payout scheme, Deputy Finance Minister Lim Hui Ying clarified.
She emphasised that current members’ withdrawal rights will remain intact, and opting into the new system will be entirely voluntary.
“The proposed plan will only apply to individuals who join the EPF after the policy comes into effect,” Lim said during a parliamentary oral question session on Thursday.
The initiative is intended to strengthen retirement financial security by offering a steady monthly income rather than a lump sum payment. Under the proposed structure, future EPF contributions would be divided into two components:
- Flexible savings – accessible at any time
- Income savings – distributed monthly until depleted
This proposal was first introduced in the 13th Malaysia Plan, tabled last Thursday, and is still under review. However, it has sparked public debate, with some MPs urging the government to offer greater flexibility and choices for contributors.
EPF Adjusts Investment Strategy Amid Global Uncertainty
In a separate update, Lim noted that the EPF is recalibrating its investment strategy in response to global market volatility, while continuing to prioritise domestic investments.
She explained that the EPF adheres to a disciplined approach via its Strategic Asset Allocation (SAA), ensuring diversification across various asset classes, regions, and strategies.
“To manage risks and protect returns, the EPF has adopted short-term proactive measures, reallocating funds to resilient markets and sectors with strong long-term growth potential,” Lim said.
She added that these measures are supported by a dynamic portfolio rebalancing system and a robust risk management framework, allowing the fund to adapt quickly to changing market conditions without taking on excessive risk.
While Malaysian investments — including local bonds and equities — remain a priority, the EPF is also expanding into private equity, real estate, and infrastructure.
As part of the Government-linked Enterprises Activation and Reform Programme (GEAR-uP), the EPF is increasing its investments in healthcare and elderly care services, including day care, home care, and affordable health technologies.
