Since its introduction in May 2024, a total of RM14.79 billion has been withdrawn by 4.63 million Employees Provident Fund (EPF) contributors through flexible accounts.
The Ministry of Finance announced that this amount covers 35% of the total 13.2 million members aged under 55 as of June 30.
Through a statement on the parliamentary website, the ministry said the total balance of flexible accounts is now worth RM10.16 billion.
Datuk Seri Dr Shahidan Kasim (PN-Arau) asked the Minister of Finance to explain when the government will allow the KSWP 2025 special withdrawal by transferring 30% of account 1 to account 3 to help the poor cope with the cost of living.
The Ministry of Finance also explained that the previous special withdrawal of retirement accounts (account 1) was only made to deal with the COVID-19 pandemic situation and is temporary.
The ministry said the issuance of account 1 contradicts the EPF mandate and international standards that emphasize the government's responsibility to provide nine branches of social protection including old age risks.
The ministry also stressed that EPF savings, especially account 1, are intended for retirement use and not as a long-term solution to address current cost of living issues and employment challenges.
In May 2024, the EPF restructured members' savings into three accounts, namely the retirement account, the welfare account and the flexible account with a contribution ratio of 75:15:10 to balance long-term, medium and short-term needs.
