Over RM14.9 billion in withdrawals from the EPF Flexible Account reported by Anwar by June's end
Anwar, the Finance Minister, has confirmed that the proposed special withdrawal scheme aimed at helping low-income Malaysians deal with the rising cost of living, which involves moving 30% of EPF savings from Account 1 (retirement account) to the EPF Flexible Account (Account 3), has not been approved.
During a recent question and answer session, Anwar clarified that withdrawals from Account 1 were only allowed during the Covid-19 pandemic as a temporary measure. He emphasized that using Account 1 savings as a long-term solution to cost-of-living issues contradicts EPF’s core purpose.
The EPF Flexible Account (Account 3), introduced in May 2024, allows members under 55 to withdraw savings anytime from the flexible portion of contributions. Since its inception, over 4.6 million contributors have withdrawn RM14.79 billion from Account 3.
However, it is important to note that these withdrawals can only be made from funds deposited directly into Account 3, not from Account 1. As of August 2025, the total remaining balance in EPF Flexible accounts is RM10.16 billion, according to Anwar.
The government continues to provide targeted subsidies, direct cash assistance, and special incentives to help low-income groups cope with the rising cost of living. These measures are in place instead of changing EPF withdrawal rules for retirement accounts.
The proposed monthly pension payout scheme, which would restructure EPF savings into flexible and income sections, remains an initial proposal still under public consultation and has no effect on current withdrawal entitlements.
In summary, as of August 2025:
- No special scheme allowing 30% withdrawal from EPF Account 1 to Account 3 exists or is approved.
- Withdrawals from Account 1 remain restricted to retirement age, barring the exceptional pandemic measure in the past.
- The Flexible Account withdrawals are accessible and have been widely used since May 2024 but only for contributions allocated to that account.
- The government uses other social assistance programs to support low-income Malaysians with living costs.
- Account 1 is for retirement savings.
- The EPF's restructuring in May 2024 includes three accounts: Retirement account/Account 1 (75%), Wellbeing account (15%), and Flexible account (10%).
- Account 2 allows withdrawals for education, housing, and health.
- The Flexible account is designed to provide contributors easier access to their pension funds during emergencies.
- The Finance Minister, Anwar Ibrahim, has clarified that a special withdrawal scheme from EPF Account 1 to Account 3, aimed at helping low-income Malaysians, has not been approved.
- During a recent Parliament session, he emphasized that using Account 1 savings as a long-term solution to cost-of-living issues contradicts EPF’s core purpose.
- Since May 2024, the EPF Flexible Account (Account 3) has enabled members under 55 to withdraw savings anytime from the flexible portion of contributions.
- The government, led by Prime Minister Anwar Ibrahim, is providing targeted subsidies, direct cash assistance, and special incentives to help low-income groups cope with the rising cost of living.
- Despite the proposed monthly pension payout scheme, which aims to restructure EPF savings into flexible and income sections, remaining an initial proposal still under public consultation, the government's current focus is on existing social assistance programs for personal-finance relief.
- Account 1 is exclusively reserved for retirement savings, while Account 2 allows withdrawals for education, housing, and health needs. The Flexible account, accounting for 10% of contributions, provides contributors with easier access to their pension funds during emergencies.
