The Employees Provident Fund’s (EPF) Flexible Account recorded RM19.87 billion in withdrawals involving 5.5 million members as of May 31.
PETALING JAYA: The Employees Provident Fund’s (EPF) Flexible Account recorded RM19.87 billion in withdrawals involving 5.5 million members as of May 31, while RM14.36 billion remained in savings, the Finance Ministry (MOF) said.
In a written parliamentary reply, the MOF said withdrawals from the EPF’s Flexible Account (Account 3) had stabilised following the initial implementation phase, with average monthly withdrawals declining to about RM440 million between January and December 2025.
“Since its implementation, some EPF members have utilised the facility to meet short-term financial needs and improve cash flow during emergencies or other urgent situations.
“EPF’s analysis showed that about 37% of members below the age of 55, or five million out of 13.3 million members, made at least one withdrawal from the Flexible Account between May 2024 and October 2025.
“Meanwhile, 63%, or 8.4 million members, did not make any withdrawals during the period,” it said.
The ministry added that among those who did not make any withdrawals, 44% had sufficient savings but chose to retain them, while 56% did not withdraw because their Flexible Account balance was either zero or below the minimum withdrawal threshold of RM50.
It said withdrawals were mainly used to support daily living expenses, followed by medical costs and debt repayments.
“To safeguard the long-term sustainability of EPF retirement savings, the government and the EPF will continue monitoring withdrawal trends, strengthening members’ financial literacy, encouraging additional and voluntary contributions, and ensuring prudent and sustainable investment management,” it said.
The MOF said the allocation of contributions to the Retirement Account had also been increased from 70% to 75%, resulting in an additional RM9.1 billion being channelled into retirement savings between May 2024 and December 2025.
The Flexible Account, introduced on May 11, 2024, was part of the EPF’s account restructuring initiative to balance members’ short-term financial needs with the need to maintain adequate retirement savings.
