“M’sians prefer RM10k now, not RM100k later” – MP Wants EPF Act Amended for Raya Dividend Withdrawals

Arau Member of Parliament (MP) Datuk Seri Shahidan Kassim has once again highlighted the public demand for another round of EPF withdrawals. This time, he is reiterating his call for the Employees Provident Fund (EPF) Act 1991 to be amended, allowing members to access their annual dividends with greater flexibility.

In a recent post on Threads, Shahidan argued that contributors should have the option to withdraw EPF dividends without waiting for retirement, particularly given the ongoing cost-of-living pressures. Specifically, he proposed that 100% of EPF dividends for 2025 be credited directly into the flexible withdrawal account (Account 3), a sub-account introduced in 2024 to facilitate withdrawals before the age of 55.

He stated that such a move would assist contributors in preparing for upcoming festive seasons and other financial obligations, providing short-term liquidity while preserving core retirement funds.

Legal constraints and the EPF Act 1991

However, under the current EPF Act 1991, dividends are automatically apportioned and credited into members’ active accounts (Accounts 1, 2, and 3) according to their respective balances. Current legislation prevents these dividends from being diverted entirely into the flexible account.

EPF CEO Ahmad Zulqarnain Onn recently emphasised this legal restriction, explaining that the Act does not permit dividends generated from Account 1 (retirement savings) to be redirected solely into Account 3.

“The Act overlooks the hardships faced by contributors”

Responding to these restrictions, the Arau MP noted that while he is fully aware of the provisions under the EPF Act, he believes the law must evolve to reflect present-day realities. Shahidan argued that the Act does not adequately address the immediate hardships or unforeseen circumstances that contributors may face.

“They’re asking for their own money, not the government’s,” he remarked.

Drawing a political comparison, he pointed out that in 2022, while leading the Opposition, Anwar Ibrahim had called on the government to allow EPF withdrawals to help the rakyat cope with financial pressure.

 “Prefer RM10,000 now than RM100,000 in the future”

Shahidan also shared feedback from contributors who are reportedly prioritising immediate survival over long-term returns.

“Some contributors told me they would prefer to have RM10,000 now rather than RM100,000 in the future when the dividend shows a return. They don’t even know if they will live that long,” he said.

“That is how difficult their lives are now. The government should consider the less fortunate and allow special withdrawals for Aidilfitri.”

In an earlier Facebook post, Shahidan indicated he would address the matter in Parliament today (2 March). However, he later informed the House that he would likely discuss the issue on Tuesday (3 March).

Also read: “What can I get with 30 sen?” M’sians React to EPF’s 6.15% Dividend Not Fully Credited to Account 3