20th November 2023 - 2 min read
Deputy Finance Minister I, Datuk Seri Ahmad Maslan has revealed that the Employees Provident Fund (EPF) Flexible Account is expected to be implemented in April 2024.
“The EPF will announce its dividend in February (2024), and more details on the Flexible Account will also be announced (then). For now, related organisations have given their views on the Flexible Account, and the public can also write to the Finance Ministry and the EPF on the matter,” said Ahmad Maslan.
The deputy minister also reassured that this third account will come with features to ensure that members’ retirement savings will not be affected. “It was stated that there would be a certain percentage contributed towards the third account and that it can only be withdrawn during emergencies. That is why the government is getting more details on the types of emergencies that it would allow for withdrawals,” he said.
Similarly, the chief executive officer of EPF, Datuk Seri Amir Hamzah Azizan also highlighted that the provident fund is in the midst of finetuning the details for the withdrawals allowed under this third account.
“We are looking at all possibilities, whether it is free for all or whether it should be guided. The concept at the moment is to have a flexible account because we have learned during Covid-19 that sometimes, there would be circumstances that make it difficult to go from day to day,” said Datuk Seri Amir Hamzah.
The EPF Flexible Account was announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2024 back in October 2023. The EPF itself had also hinted previously that it is looking at the possibility of restructuring members’ accounts to introduce a new savings and withdrawal mechanism.
(Source: New Straits Times)
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