KUALA LUMPUR (Aug 7): Existing Employees Provident Fund (EPF) members won’t be forced to switch to the proposed monthly payout system, said Deputy Finance Minister Lim Hui Ying.
She assured that the withdrawal rights of current contributors remain unchanged, and any move to the new system will be voluntary.
“The proposal will only apply to new EPF members who register after the policy is implemented,” she told Parliament during an oral question session on Thursday.
According to Lim, the proposal is aimed at improving financial security after retirement by ensuring steady income rather than a one-time lump sum. Under the plan, future EPF contributions would be split into:
- Flexible savings — can be accessed anytime
- Income savings — paid out monthly until funds run out
The proposal was first floated in the 13th Malaysia Plan tabled last Thursday and is still under consideration. However, it has drawn public concern, with some lawmakers urging the government to ensure more flexibility and choice for EPF members.
EPF adjusting investment strategy to tackle global market uncertainty
Separately, Lim said the EPF is adjusting its investment strategy to buffer against global market uncertainty while still focusing on local investments.
She said the EPF follows a disciplined investment plan under its Strategic Asset Allocation (SAA), which balances investments across different asset classes, geographies, and strategies.
“In response to global market uncertainties, the EPF has taken short-term proactive measures to mitigate the impact and risks to investment performance by selectively reallocating capital to markets and sectors that demonstrate high economic resilience and strong long-term growth prospects,” she said.
These steps, Lim added, are supported by a dynamic portfolio rebalancing mechanism and a comprehensive risk management framework, enabling the EPF to respond swiftly to market shifts while maintaining controlled risk exposure.
Lim said the EPF will continue to prioritise Malaysian investments such as local bonds and stocks, but will also grow its investments in private equity, real estate, and infrastructure.
As part of the Government-linked Enterprises Activation and Reform Programme (GEAR-uP), the EPF is also investing more in healthcare and elderly care — including day care, home-based services, and affordable health tech.
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