PETALING JAYA: The “flexible” third EPF account will be implemented from April next year, says deputy finance minister Ahmad Maslan.
Ahmad said EPF will announce the dividends for members in February, after which the finance ministry will announce details on the mechanism of the third account.
“The relevant organisations can give their views on this flexible account by writing to the finance ministry and EPF,” Bernama quoted him as saying today.
He reiterated that the funds in the third account will only be able to be withdrawn for emergencies, adding that the ministry is working on defining what constitutes an emergency.
Ahmad also brushed off repeated calls for yet another EPF withdrawal scheme, saying the third account is a “new formula” to help those in need.
“The details will be out later. It is proposed that it starts in April next year,” he said.
The 2024 budget had included a proposal for a new “flexible account” which would “allow accessibility” to EPF members at any time.
Perikatan Nasional (PN) had been pressing for another round of EPF withdrawals, and made it one of the coalition’s pledges under its manifesto for the general election last year.
Three EPF withdrawal schemes were introduced by the government of Muhyiddin Yassin, who is the PN chairman, during the Covid-19 pandemic. A fourth round was allowed after Ismail Sabri Yaakob took over as prime minister.
A total of RM145 billion was reportedly withdrawn during the pandemic by 8.1 million EPF members.