The government is still studying a proposal to introduce a new Employees Provident Fund (EPF) account structure for contributors who reach the minimum retirement age, according to Deputy Finance Minister Lim Hui Ying.

She said the proposed structure aims to balance flexibility and long-term financial security by dividing members’ savings into two components.

Two Parts In The Proposed Structure

Under the proposal, the first component would be a flexible savings account that allows members to make withdrawals at any time based on their needs.

The second component would serve as retirement income savings. Funds in this component would be distributed periodically or monthly, providing a steady stream of income until the balance is fully used up.

“This proposed structure would only apply to new members who register after the implementation date,” Lim said during the Dewan Rakyat’s question-and-answer session. “Existing members may be allowed to opt in once the system is in place.”

No Changes To Current Withdrawal Policy

Lim clarified that the proposal is still under review and that no changes have been made to the current EPF withdrawal policy.

“At present, members can still withdraw their savings at the ages of 55 and 60,” she said. “They continue to have the flexibility to withdraw their savings in a lump sum, partially, or through periodic payments.”

The proposal is part of the government’s ongoing efforts to improve retirement security and strengthen long-term financial planning for Malaysians.

EPF Membership And Savings Continue To Grow

As of 31 August, the EPF had 16.5 million members, with total savings amounting to RM1.31 trillion. This represents a 9.9% increase from RM1.20 trillion in 2024 and a 20.8% rise compared to RM1.01 trillion in 2023.

Of the total members, nine million are active contributors, representing about 55% of the overall membership. Their combined savings amount to RM1.07 trillion.

Start Date Still Under Review

The new structure has not yet been approved or implemented. Lim said the government will continue to evaluate the proposal and engage with stakeholders before making any final decisions.

Once finalised, the implementation date and transition arrangements will be announced through official channels and gazetted in accordance with existing laws.

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• TAGS:
• Account Structure
• Contributors
• EPF
• Lim Hui Ying