KUALA LUMPUR (June 27): The Employees Provident Fund (EPF) has approved nearly RM7 billion in withdrawals from Account Flexible (or Account 3) as of June 10, according to the Ministry of Finance (MOF).

In a written parliamentary reply to Datuk Seri Mohmed Puzi Ali (Barisan Nasional-Pekan), the MOF said that 2.93 million members, or 22.6% of the total members under the age of 55, have made withdrawals through Account Flexible during this period, totaling RM6.98 billion, with an average withdrawal of RM2,382.

The EPF also approved applications from 3.45 million members, or 26.6% of the total members under the age of 55, to transfer an initial amount from Account Sejahtera (or Account 2) to Account Flexible, involving RM10.86 billion, while RM4.82 billion has also been transferred to Account Retirement (or Account 1).

The MOF said that the EPF account restructuring initiatives, which introduced the new Account Flexible for members under 55 on May 11, allowing them to make withdrawals at any time and for any purpose, aim to ensure sustainable retirement financial well-being while balancing members' current needs.

"This initiative is the government's proactive step to help the people cope with the changing employment landscape and demographics of the population, as well as the life cycle needs of EPF members," it said.

In answering a separate query from Khoo Poay Tiong (Pakatan Harapan-Kota Melaka), the MOF said that the EPF's investments are guided by its Strategic Asset Allocation (SAA), aimed at optimizing long-term investment returns within tolerable risk limits.

The SAA is regularly reviewed to ensure alignment with current market conditions, policies, and EPF changes, the MOF said, adding that considerations include the liquidity profile and cash allocation needed for account restructuring impacts.

"Based on the current SAA, the EPF allocates investment cash balances in the range of 2% to 6% of total investment assets. The EPF expects that a large part of the withdrawals from account restructuring can be accommodated with existing cash balances and net cash inflows from contributions, maturities, and investment income," the MOF said.

It added that the EPF will maintain a disciplined investment approach and good liquidity management guided by the SAA to ensure the investment portfolio remains unaffected by account restructuring.

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