Malaysia

Long term effects of Account 3 withdrawals could be severe, says NGO

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

Updated 2 years ago · Published on 17 May 2024 3:07PM

Long term effects of Account 3 withdrawals could be severe, says NGO
Solomon cautioned that while the economy is boosted today, the long term repercussions could be severe, The Vibes, May 17, 2024

SPCAAM today said the introduction of EPF Account 3 will only benefit the business community and possibly result in more people living on the streets in their old age.

In a statement, the Social Protection Contributors' Advisory Association Malaysia (SPCAAM) said if half of the nation’s 16 million workers withdrew RM50 from their Account 3 every month, they would inject an extra RM400 million a month into the economy.

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

“Surely the sight of numerous B40 workers withdrawing a humble RM50 or RM100 from their old age savings, just to pay a medical bill for a sick child or to return to their hometown for festivities, must have filled the hearts of our business community with great joy and delight.

“It would seem like the business community has successfully lobbied the government to introduce a form of “trickle-up economics,” said SPCAAM president, J Solomon. 

He cautioned that while the economy is boosted today and businesses in Malaysia will be able to show profits, the long-term repercussions could be severe.

It was reported that long queues were seen at EPF buildings nationwide when  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. - The Vibes, May 17, 2024

Related News

Malaysia / 1w

Malaysia targets six out of 10 EPF members to hit RM390,000 savings by 2030 – Anwar

Malaysia / 2mth

EPF members withdraw RM19.87 billion from Flexible Account as of May 31

Malaysia / 4mth

EPF records investment income of RM27.7b, up 51 per cent in Q1

Malaysia / 4mth

EPF introduces i-Legasi, iEmas, and retirement goal calculator

Malaysia / 6mth

14,332 company directors barred from traveling overseas due to EPF defaults

Malaysia / 6mth

More good news from PM: Guessing game online ranges from EPF withdrawals, free tolls to extra holidays

Spotlight

Malaysia

Immigration busts international scam syndicate operating from unused Kuantan resort

Malaysia

Malaysia prevents RM1.9b in scam transactions as BNM targets real-time fraud alerts

Malaysia

Parental involvement crucial in tackling school bullying, says PM as cases hit nearly 5,700

Malaysia

19-year-old female student strangled to death in Kuantan following quarrel; boyfriend arrested

Malaysia

Loke slams 10 Negeri Exco members for ‘backstabbing’ Tuanku Muhriz

Malaysia

Vandalism at mosque: Blaming the MADANI govt ‘unfounded and ridiculous’ (video)

By Alfian Z.M. Tahir

Malaysia

MOHE: 1.16 million PTPTN borrowers owe RM10.7b in outstanding repayments

Malaysia

Police: Statements recorded after 13-year-old student sustains severe injuries in three-storey fall

You may be interested

Malaysia

DKU calls on police, AG to investigate, prosecute those who challenged Tuanku Muhriz’s position

By Alfian Z.M. Tahir

Malaysia

DAP keeps PH as preferred vehicle but leaves room for change ahead of GE16

By Alfian Z.M. Tahir

Malaysia

Dewan Rakyat resumes with Tabung Haji, food security and MA63 in focus

Malaysia

Federal deficit narrows to 3.7% as new borrowing falls in 2025 - Auditor-General

Malaysia

Police: Statements recorded after 13-year-old student sustains severe injuries in three-storey fall

Malaysia

Child safety needs national action plan, says protection society

Malaysia

71-year-old man charged in court over alleged sexual assault at George Town shopping mall

Malaysia

Anwar: Royal ties helped bring back F1 to Malaysia