KUALA LUMPUR (Dec 2): A total of RM10.78 billion had been withdrawn from the Employees Provident Fund's (EPF) Flexible Account (Account 3) as of the end of September, according to the Finance Ministry (MOF).
In a written parliamentary response to Wan Saiful Wan Jan (Perikatan Nasional-Tasek Gelugor), the MOF said that the withdrawals were made by 3.86 million EPF members, representing 29.4% of those below the age of 55.
To recap, the national retirement fund allowed members below 55 to withdraw money from the Flexible Account — a newly introduced account designed to meet members' short-term financial needs — following a restructuring plan that took effect on May 11.
Under this restructuring, members' contributions are now divided into a 75:15:10 ratio across Account 1 (Retirement Account), Account 2 (Sejahtera Account) and the Flexible Account respectively, replacing the previous 70:30 split between Account 1 and Account 2.
On Monday, the MOF said that the 5% increase in contributions to the Retirement Account has resulted in an estimated additional RM1.2 billion in total contributions credited between June and September 2024.
This change has also increased the number of active formal sector members under 55 who have achieved basic savings by 154,000 — from 2.41 million in June 2024 to 2.56 million in September 2024.
The MOF, however, said that 1.6 million members, or 33% of the total 4.9 million members under 55, had savings of less than RM10,000 as of the end of August 2024. Of these, 1.4 million, or 88%, were inactive members who had not contributed in the past 12 months.
The MOF added that several initiatives, including i-Saraan, i-Suri, i-Sayang, and voluntary contribution options, have been implemented by the EPF to help members secure sufficient retirement savings.
"Between January and August 2024, RM9.39 billion was voluntarily contributed by 872,000 members," it said.
Investment portfolio
In response to a separate query from Datuk Seri Hamzah Zainudin (Perikatan Nasional-Larut), the MOF said that the EPF's total investment assets stood at RM1.22 trillion as of the end of September.
Of this, 37.8% or RM462.12 billion was invested in overseas markets, still below the 39% threshold set under the Strategic Asset Allocation (SAA).
The MOF said that the EPF only repatriates surplus foreign currency funds derived from overseas investment income, such as dividends and profits.
"For domestic investments, the EPF utilises net cash flow from members' contributions," it said, adding that over 80% of the annual fund allocation is consistently invested in the local market.