Before You Touch the People’s Savings, Fix the System First
We’re already living through a financial crisis rising prices, falling purchasing power, shrinking job security. The rakyat are squeezed, and yet the “solution” being offered is… to dip into their own retirement savings again?
Let’s get one thing straight: when the economy is down, when people are struggling to afford basics, you don’t reach for their EPF funds you reach for real reforms. Lower the cost of living. Reform the healthcare system. Rethink taxation. That’s what policymakers are paid to study and fix not to take the shortcut of draining retirement accounts. Malaysians already pay through SST, service tax, income tax don’t make them pay again with their future.
Lingeshwaran RA’s voice in Parliament matters. He’s not just asking questions he’s asking the right ones.
Protection or Premature Depletion?
Account 2 isn’t just spare change it’s part of a person’s retirement safety net. Draining it now for insurance might ease short-term pressure, but what happens when there’s nothing left at 55?
Lingesh was right to warn against short-term relief turning into long-term regret.
Who Will Monitor This?
Lingesh also questioned how the government will enforce proper use of these withdrawals. Will the money truly go to approved health premiums? Who checks? Because without strict controls, this could easily become another leak in an already fragile system.
We’ve seen it before: good policy on paper, poorly executed on the ground.
Retirement at Risk
According to EPF, Malaysians have already withdrawn over RM44 million under the i-Lindung scheme. While it has benefited thousands, it also highlights a bigger problem our retirement funds are thinning.
Add in more flexible withdrawal policies, and we risk repeating the past when Account 3 (the "Flexible Account") drained too quickly. Lingesh’s question is simple but powerful:
“Cool idea but have we done the math?”
Account 2: Already Depleted, Thanks to Politicians Playing Hero
Since 2019, many contributors have already drained their EPF Account 2, largely due to political pressure and populist messaging especially during the COVID-19 crisis. Malaysians were told to “take what’s yours,” but what’s rarely said out loud is this: those withdrawals came at the cost of future stability.
After the second or third withdrawal, there’s hardly anything left in Account 2 for many individuals. And now, some of the same political figures are pushing yet another withdrawal scheme this time to pay insurance premiums.
Let’s be honest: some of these proposals feel more like political applause lines than serious, sustainable policy for rakyat welfare.
Lingeshwaran’s intervention is timely and necessary. He’s calling for discipline, accountability, and structure before we end up with a retirement system that’s nothing more than an empty shell.
When You Let Go of Principles, You Let Go of the People
Take the latest move the government’s proposal for a voluntary health insurance scheme using EPF Account 2. Even if it’s “optional,” it’s still deeply problematic. The EPF was created to safeguard retirement security, not to plug gaps in the underfunded public healthcare system.
Calling it “voluntary” doesn’t change the underlying damage to the fund’s purpose. It shifts the burden of healthcare from the state to the individual and quietly chips away at the people’s financial future.
Let’s be clear: no minister should unilaterally open the floodgates for such a significant policy shift. Decisions like this must undergo Parliamentary scrutiny and public debate. Otherwise, where do we draw the line? Will we next allow EPF to pay off student loans? Buy flood insurance? Patch potholes?
When the government treats the rakyat’s savings like a bottomless public ATM, don’t be surprised when trust collapses—not just in EPF, but in any future tax, policy, or welfare scheme, no matter how well-designed.
Don’t Let Insurance Feed on Our EPF Savings
We’ve already seen how credit card schemes inflate costs unnecessarily. Paying for something in cash might cost RM3,000, but through monthly credit, it can balloon to RM5,000. Letting insurance companies auto-deduct premiums from EPF without oversight risks the same trap. It’s easy to create convenience. It’s harder to protect the rakyat’s value.
Let’s be clear: EPF is meant for retirement, not for feeding middlemen. Every commission-based service added (like private insurance) introduces leakages costs that reduce what ends up in the rakyat’s hands. When expenses rise, inflation follows, further eroding the real value of our savings.
Healthcare Yes, But Not at Retirement’s Expense
EPF exists to ensure that when a person is older and no longer able to work, they have dignity and security. That fund is not supposed to become a buffet for third parties.
It’s true as we age, health costs rise. So what’s the point of having a retirement fund you can’t use to stay healthy?
But here’s the nuance: using EPF for direct healthcare services makes sense. Using it to pay insurance premiums which often carry hidden costs, complex terms, and unclear value requires far more scrutiny.
What’s needed is a transparent, public option for essential healthcare services, possibly through EPF-partnered clinics or a national health trust fund. That would ensure money goes directly to treatment not into corporate overhead.
Why Singapore Got It Right
Let’s take a quick look across the Causeway. Singapore’s CPF system has a clear solution: Medisave—a dedicated healthcare account, completely separate from retirement savings. Withdrawals are tightly regulated and used only for approved health needs.
That’s structure. That’s smart policy.
Malaysia, by contrast, is proposing health withdrawals from the same pot people depend on for retirement. It’s no wonder Lingesh is calling for caps, approval systems, and rebuilding plans before moving forward.
Let’s Not Trade Comfort Today for Crisis Tomorrow
This isn’t about politics. It’s about long-term sustainability.
Malaysia needs leaders who don’t just sign off but who scrutinize, safeguard, and speak up. Lingesh isn’t rejecting the idea of helping people with health costs. He’s simply saying: Let’s help—but do it smart.
Because what’s the use of having health insurance today… if we can’t afford basic needs in retirement?
TL;DR:
✅ Good idea - Malaysians need better health coverage.
⚠️ But don’t drain Account 2 without proper limits and checks.
💡 Look to Singapore for how structure protects both health and retirement.
🗣️ Thank you, Lingesh, for asking the right questions at the right time.
Disclaimer: This is a Annan Vaithegi opinion piece. I have no affiliation with Lingesh, nor do I get ladu or payroll from him. Just doing my part to keep our public discourse informed.
Annan Vaithegi (annanvaithegi@icloud.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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