14th August 2025 - 3 min read
The Ministry of Finance has revealed that a total of RM14.79 billion has been withdrawn from EPF’s Flexible Account, also known as Account 3, just over a year after it was introduced.
The withdrawals were made by 4.63 million members, representing 35.14% of the 13.2 million EPF members under the age of 55. As of now, the remaining balance in the Flexible Account stands at RM10.16 billion.
Account 3 was launched in May 2024 to give members easier access to their retirement savings for immediate financial needs. It was part of a major EPF restructuring exercise that took effect on 11 May 2024.
Under this new structure, contributions are divided in a 75:15:10 ratio between Account 1 (Retirement), Account 2 (Sejahtera), and the Flexible Account. This replaced the previous 70:30 split between Accounts 1 and 2. Members below the age of 55 can withdraw from Account 3 at any time.
In its written parliamentary reply to Arau MP Datuk Seri Shahidan Kassim, the Ministry of Finance reaffirmed that withdrawals from Account 1 remain prohibited. The ministry stressed that Account 1 savings are intended for retirement and should not be used to address issues such as the rising cost of living or job insecurity.
To support Malaysians facing financial challenges, the government has implemented other assistance measures, including direct cash aid, targeted subsidies, and special incentives.
In a separate reply to Kuala Nerus MP Datuk Alias Razak, the Ministry of Finance said EPF is open to enhancing its i-Lindung facility in the future. The i-Lindung facility is an EPF platform that allows members to purchase affordable insurance and takaful protection directly using their EPF savings.
The proposed enhancement may allow members to use funds from Account 2 to purchase insurance and takaful products. The ministry emphasised that such purchases would remain voluntary, with policyholders free to use any available funds to pay premiums. This proposal is one of several financing options currently being considered.
Stakeholder engagement sessions are ongoing to create a basic insurance and takaful product under the RESET programme. The initiative aims to address the increasing cost of healthcare and private insurance.
According to the ministry, the product’s structure and design have not yet been finalised. The concept is expected to be ready by December 2025, with implementation targeted for the end of 2026.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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