‘Flexible account open to all’

Kuala Lumpur: Having a flexible account under the Employees’ Provident Fund (EPF) will allow contributors to access part of their money, irrespective of their income level, says Datuk Seri Ahmad Maslan.

“It can be accessed by all members, be they from the B40, M40 or T20 groups,” said the Deputy Finance Minister.

Ahmad said the introduction of the third account would allow contributors to carry out withdrawals during emergencies, even for those below 55.

“This is to ease the financial burden on those facing emergencies.

“We are finalising the details and mechanism for this flexible account,” he told the Dewan Rakyat in response to Kalam Salan (PN-Sabak Bernam).

Kalam had asked if the government would allow targeted EPF withdrawals. Ahmad said the previous practice of allowing EPF withdrawals would no longer be carried out.

Addressing the floor: Ahmad speaking in Parliament yesterday. — Bernama

The withdrawals, he added, had amounted to RM145bil.

During the tabling of Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim announced that flexible EPF accounts would be introduced where contributors could access them at any time.

He said the EPF accounts of contributors would also be restructured to empower the savings of retirees.

The flexible account was among several initiatives under EPF announced in the Budget.

In July, the EPF was reported to be looking into introducing Account 3, which would allow savings withdrawals to be made at any time.

The account, it said, would function like a savings account, and members could withdraw their savings at any time.

The proposal to introduce the account was also to meet the potential emergency cash needs.

The current EPF savings scheme structure for members under the age of 55 consists of Account 1 and Account 2, with a percentage rate of 70% and 30%, respectively.