Will RM10,000 withdrawals wipe out low-balance EPF accounts?

Question

Accepted Answer

A fourth EPF special withdrawal of up to RM10,000 can effectively zeroise accounts for members with less than RM10,000

The special fourth EPF withdrawal announced by Prime Minister Datuk Seri Ismail Sabri Yaakob allows Malaysians to withdraw up to a maximum of RM10,000. The EPF has said it is concerned about retirement adequacy because this is the fourth withdrawal since the pandemic began, and it noted that up to 40% of members have less than RM10,000 in their accounts. For those low-balance members, using the full RM10,000 withdrawal would effectively empty their EPF accounts, leaving them with long-term financial uncertainty.
The withdrawal is capped at RM10,000 as the fourth since the pandemic began
The latest measure is framed as a “fourth withdrawal” from the Employees Provident Fund, with a special allowance to withdraw up to RM10,000. The EPF has highlighted that this initiative comes after multiple pandemic-era withdrawals, positioning the new round as the fourth since the pandemic began.
EPF data indicates many members have less than RM10,000
The EPF stated that up to 40% of members have less than RM10,000 in their EPF accounts. That figure matters directly to the question of whether withdrawals can wipe out balances, because the cap matches the threshold described by the EPF.
Using the full amount would leave low-balance accounts effectively empty
For members whose balances are below RM10,000, a withdrawal capped at RM10,000 would be sufficient to exhaust their accounts. The coverage characterises this outcome as the fourth and final withdrawal “effectively zeroising” those accounts, which would plunge workers into long-term financial uncertainty.
The EPF’s concern centres on retirement adequacy after repeated withdrawals
The EPF’s stated concern is retirement adequacy, tied to the fact that this is the fourth withdrawal since the pandemic began. With up to 40% of members holding less than RM10,000, the EPF’s worry links the withdrawal cap to the risk of accounts being emptied for a substantial share of members.

Reading history

Hide →

This history is cleared when the page is closed.

Will RM10,000 withdrawals wipe out low-balance EPF accounts?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends