EPF members withdrew RM19.87 billion from Akaun Fleksibel as of 31 May 2026, involving 5.5 million members, with RM14.36 billion remaining in the account, the Ministry of Finance told the Dewan Rakyat in a written reply. 

The ministry cited an EPF research report, “Enduring Today, Shaping Tomorrow: Akaun Fleksibel as a Financial Lifeline for Wellbeing,” published in April, which found that of the 8.4 million members who made no withdrawal between May 2024 and October 2025, 56% had a balance of zero or below the RM50 minimum required to withdraw.

Monthly withdrawals have since stabilised to about RM440 million a month between January and December 2025, down from the pace seen shortly after Akaun Fleksibel launched in May 2024, the ministry said.

4.7 Million Members Can’t Meet The RM50 Minimum

Akaun Fleksibel started at RM0 for most members when it launched, aside from a one-off transfer option that closed on 31 August 2024. For members who did not use that option, 10% of monthly contributions alone takes close to two years to clear RM50, which helps explain why 4.7 million members have never been able to withdraw at all.

Commenting on the figures, Universiti Sains Islam Malaysia senior economics and banking lecturer Dr Mohd Faisol Ibrahim described the withdrawal trend as a large-scale leakage of retirement funds, with Akaun Fleksibel, originally meant as an emergency reserve, increasingly used to cover daily living costs and settle debt rather than genuine emergencies.

Savings Could Reach RM32 Billion

Faisol said if the RM19.87 billion had remained in EPF and earned a dividend of 5% a year, it could have grown by about RM12.5 billion over 10 years, bringing the total value to roughly RM32.37 billion. He said the growth would be larger still over 30 years, benefiting both members’ savings and EPF’s ability to expand its investment assets.

Using EPF’s five-year average dividend of 5.88%, a single RM5,000 withdrawal from Akaun Fleksibel today would grow to roughly RM15,700 if left untouched for 20 years, or close to RM27,800 over 30 years.

Using EPF To Clear Debt Offers Only Short-Term Relief 

Settling debt with EPF withdrawals only offers short-term relief, Faisol said, since it does not address the reasons a contributor took on debt in the first place. Without changes to how they manage their finances, he said, contributors risk falling into new debt, further shrinking savings meant to act as a safety net in old age.

A useful check before withdrawing is comparing the debt’s interest rate against EPF’s own dividend rate. For example, paying off a loan charging 8% interest may save more money than leaving the funds in EPF earning 5.88%. But withdrawing to clear a lower-cost loan could mean losing out on potential long-term growth. 

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Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

About THE AUTHOR

Iman Aminuddin

Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

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