The Malaysian government is evaluating a proposed new structure for Employees Provident Fund (EPF) accounts aimed at contributors reaching the minimum retirement age, Deputy Finance Minister Lim Hui Ying announced today.
Speaking during a question-and-answer session in the Dewan Rakyat, Lim outlined that the proposed structure would consist of two components. The first is a flexible savings component, allowing members to withdraw funds at any time based on their needs. The second is a retirement income savings component, where savings would be disbursed periodically or monthly until fully depleted.
“This proposed structure would apply only to new members who register after the implementation date,” Lim explained. “However, existing members may also be allowed to opt in once the structure is implemented.”
Lim was responding to a query from Jimmy Puah (PH-Tebrau) regarding the government’s plans to implement the new structure and reassess EPF withdrawal methods. She clarified that the current EPF withdrawal policy remains unchanged, with members able to withdraw savings at ages 55 and 60. “Members currently have the flexibility to withdraw their savings in a lump sum, partially, or through periodic payments,” she added.
As of August 31, 2025, the EPF reported 16.5 million members with total savings of RM1.31 trillion, reflecting a 9.9% increase from RM1.20 trillion in 2024 and a 20.8% rise from RM1.01 trillion in 2023. Of these members, nine million, or 55%, are active contributors, holding savings worth RM1.07 trillion.
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