KUALA LUMPUR – Deputy Finance Minister I Datuk Seri Ahmad Maslan said the Employees Provident Fund (EPF) will introduce a third account that allows emergency withdrawals for individual contributors by April 2024.
“The announcement of the EPF account dividend is slated for February 2024. Subsequently, the Finance Ministry will unveil comprehensive guidelines for the Flexible Account, designated as the third account,” Ahmad said.
He also encouraged relevant organisations to share their perspectives on the Flexible Account by submitting feedback to both the ministry and the EPF.
These remarks were made during his address after officiating the 40th Asean Social Security Association (Assa) Board of Directors Meeting and Seminar today.
Ahmad Maslan said that while the government was committed to the implementation of the account, it must be done judiciously to avoid significant impacts on people’s incomes.
“This facility is designed for use only in times of emergency, and the specific criteria for emergencies will be outlined later.”
He provided context by recalling that RM145 billion had been disbursed through four withdrawals during the Covid-19 pandemic.
Afterward, the government decided to discontinue further withdrawals.
Despite this, Ahmad acknowledged persistent calls from various quarters to permit EPF savings withdrawals for emergency situations.
“To address this, we are introducing a new mechanism – the third account. Details of the proposal will be unveiled in the coming months, with the initiative set to commence in April next year,” he said.
When tabling Budget 2024 in October, Prime Minister Datuk Seri Anwar Ibrahim said the government will introduce a Flexible Account that allows contributors unrestricted access to their funds.
Anwar said the EPF members’ accounts will also undergo restructuring to bolster retirement savings.
The Pakatan Harapan (PH) chairman also said the government is committed to enhancing social protection programmes to ensure the continued well-being of vulnerable groups.
In late October, Ahmad said the government was finalising details on the withdrawal access for the proposed Flexible Account.
He said there would be no withdrawal access from EPF accounts as it was before.
“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,” he said in the Dewan Rakyat.
“However, the aim is to assist EPF members for withdrawals during emergencies.” – November 20, 2023