Deputy Finance Minister I Datuk Seri Ahmad Maslan said that the government is currently finalising details on the proposed Employees Provident Fund (EPF) Flexible Account, including its withdrawal access.

“From next year, we will have the Flexible Account, but the method (of withdrawal) and the percentage of savings fund that can be put into the Flexible Account have not been finalised. However, the aim is to assist EPF members for withdrawals during emergencies,” said the deputy minister, clarifying as well that the Flexible Account will be introduced as a third account in addition to the existing Akaun 1 and 2.

For context, the current EPF account structure for members under the age of 55 is made up of Akaun 1 and Akaun 2, with each receiving 70% and 30% of a member’s contribution every month, respectively. With the introduction of the Flexible Account as a third account, this rate is set to be restructured.

Aside from that, Ahmad Maslan also highlighted that the Flexible Account will allow all contributors to access part of their money, irrespective of their income level. “It can be accessed by all members, be they from the B40, M40, or T20 groups,” he stated.

The deputy minister further said that with the introduction of the Flexible Account, the government will no longer allow targeted or special EPF withdrawals, as had been carried out in the past. This is in reference to withdrawal schemes like i-Lestari, i-Sinar, i-Citra, and the RM10,000 special withdrawal facility that had been previously allowed during the Covid-19 pandemic. As a result of these schemes being introduced, a total savings of RM145 billion was withdrawn by EPF members between 2020 and 2022.

To clarify, the EPF Flexible Account was announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2024, with the aim of empowering EPF members in managing their finances and saving for their retirement. It is one of several EPF-related initiatives proposed under the national budget for 2024.

The EPF itself, too, had actually toyed with the idea of introducing an Akaun 3 even earlier, back in July 2023, which would allow flexible and unconditional withdrawals. At that time, the provident fund had said that the new Akaun 3 would function similarly to a savings account, and it could address members’ possible cash flow concerns during future emergencies.

(Sources: Malay Mail, The Star)

• TAGS:
• Akaun 1
• Akaun 2
• Budget 2024
• Datuk Seri Ahmad Maslan
• Employees Provident Fund
• Employees Provident Fund (EPF)
• EPF
• EPF Akaun 1
• EPF Akaun 2
• EPF Akaun 3
• EPF Flexible Account