Sabah and Labuan EPF regional director Mohd Fadil Sarehan
KOTA KINABALU: Almost three-quarters of Employees Provident Fund (EPF) contributors in Sabah have savings of less than RM50,000 in their EPF accounts.
Sabah and Labuan EPF regional director Mohd Fadil Sarehan said this represents about 71%, or 691,322, of the 973,693 contributors in Sabah.
Mohd Fadil said there is a need to raise awareness among contributors to increase their contributions for their future benefit.
At the same time, he added, 403,604 EPF contributors were identified as inactive members.
"Many EPF members in Sabah are inactive as they have not contributed in a long time," he said during a financial literacy programme held by Malaysia Deposit Insurance Corp (PIDM) on Monday (Oct 28).
"The previous savings might have been withdrawn during the Covid-19 pandemic. That is why many EPF members in Sabah have savings of less than RM50,000," Mohd Fadil added.
As such, he urged members to restart their contributions as a financial backup for their retirement.
Meanwhile, he also called on members to make or renew their nominations through the i-Akaun to avoid complications if something happens to the contributor.
He said those who are not working, such as housewives, are encouraged to contribute voluntarily with EPF, as the government has provided an incentive through i-Saraan under the Budget 2025.
"The scheme has been improved, so continue to contribute this year and next year. Anyone can become an EPF member, as long as they are aged 14 and above," Mohd Fadil said.
He added that teenagers could register as members even if they are not working, as parents could help them contribute as a start.
