Malaysia

EPF Account 3 withdrawals set to create bigger problem, claims group

Country has failed to put sufficient socioeconomic policies in place, says SPCAAM.

Updated 2 years ago · Published on 29 May 2024 5:43PM

EPF Account 3 withdrawals set to create bigger problem, claims group
Starting May 12 until August 31, EPF members will have the option to transfer one-third of their savings from Account 2 to Account 3. – The Vibes file pic, May 29, 2024.

THE three million applications from EPF members to withdraw funds from their Account 3 is akin to a case of stealing from the poor to benefit the rich, said the Social Protection Contributors Advisory Association Malaysia (SPCAAM).

In a statement today, SPCAAM said while it supports economic and spending stimulus, this cannot come from the retirement savings of people who need it most when they retire.

Its international labour adviser Callistus Anthony D’Angelus claimed that the government was failing the people in this regard. 

“The Madani government has instituted a lot of positive reform, except where it concerns workers. 

“It is evident that the balance between labour and capital is heavily weighted in favour of capital and this seems to be the policy of the government being executed by the Ministry of Human Resources.

“With that many contributors needing to dip into their retirement savings to sustain themselves on a day-to-day basis, it means that the country has failed to place sufficient socioeconomic policies in place,” he said.

He said the government was actually creating a bigger problem instead of attempting to resolve it.

The Employees Provident Fund (EPF) had earlier said that it has received 2.86 million applications to transfer an initial amount from Account 2 (Akaun Sejahtera) to Account 3 (Akaun Fleksibel) as of May 22, involving RM8.78 billion.

EPF chief operating officer Sazaliza Zainuddin said a total of 3.04 million withdrawal applications from Account 3 were approved, amounting to RM5.52 billion.

“We expect the number of applications from members choosing to transfer an initial amount to continue to rise until the deadline on August 31.

“We are also pleased to see the significant increase in applications via the KWSP i-Akaun mobile app. 

“This reflects our efforts to enhance user experience and accessibility, as we continue to innovate and expand our digital offerings,” he had said.

Starting May 12 until August 31, members will have the option to transfer one-third of their savings from Account 2 to Account 3. – May 29, 2024

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