PETALING JAYA: Access to savings with a flexible Employees Provident Fund (EPF) account could be beneficial in a financial pinch, say contributors.
Executive Nurul Kamal, 31, from Kuala Lumpur, noted access to savings could be a lifeline, especially due to the increased cost of living and inflation.
“The money can come in handy for individuals and business owners. However, contributors should also take responsibility for their expenditures and only use the money when it is really needed,” she said.
Teacher Mimie Harrie, 43, from Seremban, also said the flexible account would allow contributors to make withdrawals during emergencies.
“It is good for EPF members, but I cannot comment further without details, especially on the mechanism.
“So, we have to wait for them to finalise it. But in terms of easing the financial burden and easing withdrawals, that is a good idea,” she said.
In Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim announced that flexible EPF accounts would be introduced for contributors to access at any time.
Meanwhile, in Parliament yesterday, Deputy Finance Minister Datuk Seri Ahmad Maslan said the mechanism for the new flexible EPF account is being finalised.
Coffee shop operator Idris Shah, 23, from Ampang, said the move could help spur the economy as many are struggling to make ends meet.
“With inflation and wages stagnant, employees are finding it hard to buy basic provisions such as rice, petrol, cooking oil, eggs, onions and other necessities.
“So when there is money to spend, you are helping to spur the country’s economy,” he said.
Financial planner Gilbert Tan, 57, stated the EPF flexible account could offer potential benefits for members, especially during emergencies when they need to access their savings.
But he also wants to deposit his savings into this account to provide a safety net for his future retirement.
“Compared to the past, it is now highly convenient to access funds for emergencies, and the interest rate on EPF’s deposits is more attractive than that of other banks,” he said.
Tan recommended that those in the B40 and M40 income groups consider making regular fixed deposits into this account, if they have the means.
He emphasised the importance of younger members securing their retirement.
He said, for the T20 group like himself, this offers an extra option, especially with the ability to withdraw money online.
“I hope the online security measures are robust. In the past, EPF withdrawals were more restrictive, requiring individuals to submit applications in person at the branch.
“Now that online withdrawals are possible, it’s crucial to ensure robust online security,” he added.
