KUALA LUMPUR: A significant number of Employees Provident Fund (EPF) members in Malaysia have chosen to transfer funds into the Flexible Account, with a total of RM14.6 billion being moved. This decision was made by 4.1 million members, representing 31.6 percent of EPF contributors under the age of 55, according to the Ministry of Finance.

According to BERNAMA News Agency, Finance Minister II Datuk Seri Amir Hamzah Azizan disclosed that RM6.6 billion in savings had additionally been transferred to the Retirement Account. As of November 27, 2024, four million EPF members, or 30.5 percent, had made withdrawals from the Flexible Account, totaling RM11.6 billion. The remaining balance in the Flexible Account stands at RM7.4 billion.

Amir Hamzah outlined the withdrawal trends, indicating an expected annual withdrawal of RM5 billion to RM7 billion in the coming years. He emphasized that this amount is minor compared to the EPF’s investment fund growth, which increases by RM100 billion to RM120 billion annually fr
om investment income and net contributions. The projected withdrawals are also significantly lower than the cash balance allocation based on Strategic Asset Allocation (SAA), which accounts for two to six percent of the EPF’s total investment assets, equivalent to at least RM25 billion.

In response to a query regarding the possibility of converting conventional savings to shariah savings, Amir Hamzah mentioned that the EPF is reviewing the terms. “We will see if there is an opportunity to revisit the terms, but this requires more in-depth attention… this is still under consideration by the EPF,” he stated in response to an additional question from Datuk A Kesavadas Nair.