00:00 Economist Muhammad Abdul Khalid, a research fellow at Universiti Kebangsaan Malaysia,
00:06 praised the EPF's new third flexible account as beneficial for both flexibility and enhancing
00:11 retirement savings.
00:13 Muhammad said the third account offers a reasonable balance, especially important after the RM150
00:19 billion withdrawn during the pandemic.
00:22 He said had the four withdrawals during the pandemic not happened, the need for account
00:27 three would not have risen, adding that a third account is a less damaging solution
00:31 to the needs of members requiring access to cash.
00:35 Starting May 11, EPF contributions will be divided as follows, 75% into account one,
00:40 15% into account two and 10% into account three.
00:46 Commenting on the 5% increase in account one contributions, Muhammad said EPF was attempting
00:51 to address the challenge of balancing the pressure from the people for immediate withdrawals
00:55 with rebuilding retirement savings quickly.
00:58 But he said the measure falls short in addressing the broader ramifications of an ageing population
01:03 as not all workers possess EPF accounts, while only half of non-pensionable workers are currently
01:08 enrolled in EPF.
01:10 Certain measures such as ensuring comprehensive retirement savings and extending this obligation
01:14 to encompass all workers, particularly those in the informal sector, is paramount, he said.
01:20 Sam Woochua, FMT News.
01:22 (upbeat music)
Comments