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A total of RM19.87 billion has been withdrawn from the Employees Provident Fund's (EPF) Flexible Account (Account 3) by 5.5 million members as of 31 May, according to the Ministry of Finance (MOF)
However, despite concerns that Malaysians would heavily dip into their retirement savings after the account was introduced, the ministry said most eligible members have not made a single withdrawal.
The figures were revealed in a written parliamentary reply dated 9 July to Selayang member of parliament (MP) William Leong Jee Keen, who asked what steps the government is taking to safeguard the country's retirement savings following the introduction of the Akaun Fleksibel.
The ministry also said RM14.36 billion remains in members' Flexible Accounts.
However, the ministry also revealed that almost two-thirds of eligible EPF members have left their savings untouched
Citing the EPF research report 'Enduring Today, Shaping Tomorrow: Akaun Fleksibel as a Financial Lifeline for Wellbeing', published in April, the ministry said 37% of eligible members below the age of 55, or five million out of 13.3 million people, made at least one withdrawal between May 2024 and October 2025.
The remaining 63%, or 8.4 million members, chose not to withdraw any money.
Among those who kept their savings intact, 44% had sufficient balances but chose to leave the money untouched, while 56% had no savings or balances below the minimum RM50 withdrawal threshold.
According to the ministry, EPF members primarily relied on the Flexible Account to ease short-term financial pressures
The most common reason for withdrawing money was to cover daily living expenses, followed by medical costs and debt repayments.
The ministry added that withdrawal activity has eased since the account's launch on 11 May 2024.
Based on EPF's analysis, withdrawals stabilised after the initial surge, with members withdrawing an average of RM440 million per month between January and December 2025.
Meanwhile, the ministry said safeguards were introduced alongside the Flexible Account to strengthen EPF members' long-term retirement savings
When Account 3 was launched, the share of monthly EPF contributions channelled into the Retirement Account (Account 1) was increased from 70% to 75%.
According to the ministry, the additional allocation channelled RM9.1 billion into members' retirement savings between May 2024 and December 2025.
The government and EPF will also continue monitoring withdrawal patterns, strengthen financial literacy programmes, encourage voluntary and additional contributions, maintain prudent investment strategies, and periodically review policies to ensure retirement savings remain sustainable while allowing members flexibility to meet short-term financial needs.
