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KUALA LUMPUR – A total of 4.7 million Employees Provident Fund (EPF) members have not made any withdrawals from their Flexible Account because they either had no savings or their balance was below the minimum withdrawal amount of RM50.
The Finance Ministry said the figure represented 56 per cent of the 8.4 million members who did not make any withdrawals between May 2024 and October 2025, based on findings from the Enduring Today, Shaping Tomorrow: Akaun Fleksibel as a Financial Lifeline for Wellbeing report published in April.
It said the remaining 3.7 million members, or 44 per cent, had sufficient savings but chose to leave their funds untouched.
“The same report also showed that members who made withdrawals from the Flexible Account primarily used the facility to support their living needs and manage daily expenses.
“The main reasons for making withdrawals were to meet daily living expenses, followed by healthcare costs and debt repayments,” it said in a written parliamentary reply in the Dewan Rakyat on Thursday.
The Finance Ministry was responding to a question from Leong Jee Keen (PH-Selayang) on changes and trends in EPF withdrawals through Account Three, as well as the government’s measures to ensure the resilience of the retirement fund and the long-term sustainability of retirement savings.
The ministry added that about 37 per cent, or five million members aged below 55, had made at least one withdrawal from their Flexible Account during the same period.
It said EPF’s analysis also found that withdrawal patterns had become more stable after the initial implementation phase, with monthly withdrawals gradually declining to an average of about RM0.44 billion a month between January and December 2025.
“As of May 31, total withdrawals through the Flexible Account stood at RM19.87 billion, involving 5.5 million members.
“The remaining balance in the Flexible Account amounted to RM14.36 billion,” it said.
The ministry said the government, together with EPF, continued to implement several key measures to strengthen the retirement fund’s resilience and ensure the long-term sustainability of the retirement system.
“These include maintaining the core savings structure, continuously monitoring Flexible Account withdrawal trends, strengthening members’ financial literacy, encouraging additional and voluntary contributions, adopting prudent and sustainable investment management, and conducting regular policy reviews.
“These measures are important to ensure a balance between members’ short-term financial needs and the adequacy of their long-term retirement savings,” it said.
