M’sians have split views over possible new EPF account

In two minds: With a possible new EPF Account 3, Malaysians are split between using the money for immediate needs or leaving it for the future. — YAP CHEE HONG/The Star

PETALING JAYA: With a new possible source of disposable cash in EPF’s to-be-announced Account 3, Malaysians are split between using the money to settle current financial shortcomings or saving it for the future.

A business manager who wanted to be known only as Kamarul, said he would look into the possibility of using withdrawals from Account 3 to renovate his newly purchased house.

“Although it’s not a major renovation, it still costs quite a bit of money. I have already saved more than half of the sum needed, and can use withdrawals from Account 3 to top up the remainder and begin the work earlier.

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“Beyond the renovations, I will opt to leave the money there unless there are really some tough situations ahead,” said the 39-year-old.

Meanwhile, sales engineer Jason Lee said he would consider withdrawing some of the Account 3 savings to settle some long-term personal debts.

“I was financially reckless when I was younger and ended up owing a few of my friends quite a lot of money which I have yet to pay back fully.

“I’ll probably use some of the money from Account 3 to quickly clear these debts and maybe use some of it to treat my family to dinner.

“But once the debts are cleared, I will probably not touch the Account 3 money anymore as I’m aware I lack financial self-control,” the 33-year old, who earns roughly RM3,000 monthly, said.

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Marketing executive Haikal Abdullah, 33, however, leaned towards not making withdrawals from Account 3.

“As it stands, I’m able to support myself with my salary, although there is quite a bit of budgeting to do.

“While the option of withdrawing from Account 3 is good, I will try to not touch it unless there is a severe emergency,” he said.

Assistant manager Evelyn Lee, 34, said she would similarly refrain withdrawing from Account 3 no matter the circumstance.

“I don’t want to develop a mindset that there is additional cash I can draw from anytime, which could cause me to develop bad spending habits.

“I’d rather keep the money inside to earn more dividends and eventually use it to buy my dream home when I’m much older,” Lee, who currently earns around RM5,000 monthly, said.