PETALING JAYA: The Social Protection Contributors’ Advisory Association Malaysia (SPCAAM) said the large number of B40 workers withdrawing money from their EPF Account 3 would only lead to more people finding it difficult to cope in their old age.

In a statement today, SPCAAM said the business community had successfully lobbied the government to introduce Account 3 which was a form of ‘trickle-up economics’.

“This move allows businesses to benefit from the retirement savings of the B40 and M40 communities.

“Reports of long queues in EPF offices across the country on the first day of the introduction indicate an outstanding reception for the Account 3 scheme.

“If just half of the nation’s 16 million workers withdraw RM50 from their Account 3 every month, their old age savings alone will be able to inject an extra RM400 million a month into the economy,“.

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An additional RM4.8 billion a year in the economy is what the business community needs to show a profit even in this sluggish economy, said SPCAAM.

“We heartily congratulate the “intelligence” of the business community in assisting the government to come up with such an “intelligent” scheme which will only likely lead to more people living on the streets in their old age,“ it added.

It was reported that long queues were seen at EPF buildings nationwide when the Account 3 took effect on May 11.

With the restructuring of EPF accounts, the monthly contribution of members would be divided by 75%, 15% and 10%, and channelled to Accounts 1, 2 and 3 respectively.

However, contributors are only allowed to withdraw up to RM250 per day.

According to EPF’s i-Akaun application, the minimum sum members can withdraw per day from the flexible account is RM50.