New initiatives to raise private consumption growth

PETALING JAYA: Everything comes at a cost and that is set to be the case with the government’s decision to allow flexible withdrawals from the Employees Provident Fund (EPF) and to raise civil servants’ pay since the last raise over more than a decade ago.

Critics have panned the government for introducing the new EPF Account 3, which went live on Saturday, pointing out that it will likely drain old-age savings at a time when about one-third EPF members at age 54 have less than RM10,000 in savings with the retirment fund.