Malaysians laud introduction of third flexible EPF account

The Employees Provident Fund has introduced a flexible Account 3 which has been hailed as being useful during emergencies and in coping with the rising cost of living.

KUALA LUMPUR: Malaysians have lauded the introduction of a flexible third EPF account, aimed at providing EPF contributors with access to funds whenever needed, especially during emergencies.

Isyamudin Raimi, 38, welcomed the new account, saying that it would be useful during times of financial emergency.

“Sometimes, when we don’t expect it, we need extra money to address our healthcare needs and also for tragedies such as accidents,” he told FMT.

Isyamudin also said the new account would help Malaysians like himself in managing the rising cost of living.

Isyamudin Raimi.

“Before this, we could not withdraw money from Account 2 (Akaun Sejahtera), only for very specific cases like education. With the introduction of Account 3 (Akaun Fleksibel), contributors now have more flexibility in accessing funds,” he said.

On April 25, EPF chief executive Ahmad Zulqarnain Onn said monthly contributions would be split three ways: 75% into Account 1 (the retirement account, Akaun Persaraan), 15% into Account 2, and 10% into Account 3.

Currently, 70% of EPF members’ monthly contributions are channelled into Account 1, which remains inaccessible until retirement, while the remaining 30% is directed to Account 2, accessible for education, healthcare, housing, and a partial withdrawal at age 50.

Nur Azlina Abdul Jalil, 44, described the revised distribution of monthly contributions as “well-balanced”.

Nur Azlina Abdul Jalil.

“Allocating 10% to Account 3 may seem like a small amount, but looking at the long term, it will accumulate significantly. So, when we fall on hard times, the money will be very helpful,” she told FMT.

A businessman, Chan Kok Ho, 30, commended the EPF’s decision to channel  10% of contributions into Account 3. “It will help Malaysians secure their retirement savings while also satisfying the needs of people who really need the money right now,” he said.

Chan Kok Ho.

EPF also announced that members could choose to transfer a portion of their Akaun Sejahtera savings to Akaun Fleksibel for immediate access, with the opt-in window open from May 11 to Aug 31.

Nurzanaim Zakaria, a cashier, said she would consider transferring some of her Account 2 savings into Account 3, deeming it a practical choice for those in urgent need of funds.

Nurzanaim Zakaria.

“It’s good as long as the money they withdraw is used for emergencies and necessities because nowadays everything is so expensive,” she told FMT.

Checks on social media also show widespread approval for the addition of Account 3.

A netizen who goes by the handle @rojakdude said the 10% allocation to Account 3 is significant despite its small share of total contributions.

“This small slice offers flexibility without risking your core retirement fund. While Account 3 offers flexibility for emergencies or short-term needs, the bulk of your money is still growing safely in Accounts 1 and 2, protected until you really need it.”