KUALA LUMPUR, Oct 8 — The government is still reviewing and studying a proposal to introduce a new structure for the Employees Provident Fund (EPF) accounts that would be implemented on contributors reaching the minimum retirement age, said Deputy Finance Minister Lim Hui Ying.
The new structure would be divided into two components, the first being a flexible savings component in which withdrawals can be made at any time according to the member’s needs.
The second component would be retirement income savings, where the member’s savings would be distributed periodically or monthly until fully depleted.
"This (new structure) will only apply to new members who register after the implementation date. Once implemented, existing members who wish to opt into the proposed structure may also be allowed to do so,” she said during the oral question-and-answer session in the Dewan Rakyat today.
Lim was responding to Tebrau MP Jimmy Puah's supplementary query on the government's steps to implement the proposal and re-evaluate the EPF savings withdrawal methods.
She emphasised there are no changes to the existing EPF withdrawal policy; the option to withdraw savings at ages 55 and 60 remains.
"Currently, members have the flexibility to withdraw their savings in a lump sum, partially, or through periodic payments,” Lim said.
As of August 31 this year, there are 16.5 million EPF members, with savings totalling RM1.31 trillion, a 9.9 per cent increase compared with RM1.20 trillion in 2024, and 20.8 per cent against RM1.01 trillion in 2023.
Out of this 16.5 million, nine million members, or 55 per cent, are active contributors, with total savings of RM1.07 trillion.
