THE Ministry of Finance has revealed that only 38.3 per cent of Employees Provident Fund (EPF) contributors in the formal sector, aged between 18 and 55, had met the basic savings requirement as of 31 July 2025.
Finance Minister II Datuk Seri Amir Hamzah Azizan said today that this figure, up from 30.4 per cent in December 2022, reflects ongoing efforts to rebuild retirement savings after mass withdrawals during the COVID-19 pandemic.
In response to a Dewan Negara question on Monday by Senator Mohd Hasbie Muda, Amir said: “Members who reach age 55 may withdraw savings partially, periodically, or in full. Therefore, post-55 balances are not an appropriate measure of retirement sufficiency. The more meaningful indicator is whether members reach the Basic Savings threshold during the accumulation phase.”
According to the ministry, 1.38 million Bumiputera contributors, 1.22 million Chinese, 214,000 Indian, and 38,000 from other ethnic groups have achieved the target savings level.
The government acknowledged that Bumiputera members were disproportionately affected by COVID-era withdrawals.
“While those measures eased short-term burdens, they significantly eroded long-term savings. Rebuilding retirement reserves is now a priority to ensure sustainable post-retirement income,” it said. - Sept 8, 2025
