The option was offered to EPF members from May 12.

Amir told the Dewan Negara that for the same period, RM12.6 billion was transferred to 3.8 million (29.3%) flexible accounts (Account 3), while RM5.6 billion was transferred to retirement accounts (Account 1).

He said the retirement account transfer increased members’ savings, with 43,000 new members having reached the basic savings threshold.

“Withdrawals from the flexible account do not significantly impact EPF because this was anticipated and within EPF’s cash and money market allocation.

“Under the current strategic asset allocation, EPF has allocated 2-6% of total investments in cash and money market instruments,” he said during a question-and-answer session today.

He was replying to Anna Bell@Suzieana Perian, who asked about the percentage of contributors choosing to transfer contributions into their flexible accounts and make withdrawals.

Regarding implications for the national economy, Amir said initial estimates project RM15 billion (0.8%) of the gross domestic product (GDP) for 2023 in flexible account withdrawals in the first year.

“Nevertheless, the actual impact of the introduction of the flexible account on the country’s GDP growth will depend on several factors, including the members’ spending tendencies,” Amir said.

He also said restructuring EPF accounts is aimed at improving the security of retirement income and giving members access to their flexible account at any time and for any purpose, especially for emergencies.

“However, EPF members are advised to use withdrawals for emergencies and urgent needs only.”