THE Employees’ Provident Fund (EPF) will implement the third account or “flexible” account in April next year, Deputy Finance Minister Ahmad Maslan said.

He said the fund will announce its dividend for 2023 in February and the Finance Ministry will reveal a detailed plan on the account soon after.

“Organisations can give their views on the flexible account through the ministry and EPF,” he told the media after a function in Kuala Lumpur today.

Prime Minister Anwar Ibrahim, who is also finance minister, announced the third EPF account when tabling Budget 2024 in October.

He said under this account, contributors can access it at any time.

Currently, there are two accounts in EPF – Account 1, which cannot be accessed until retirement, and Account 2, where funds can be withdrawn for purposes such as education or payment for housing loans.

“It will be implemented, but guidelines are needed to ensure it does not adversely affect people’s incomes and that money from the third account can only be withdrawn during emergencies,” Ahmad was quoted as saying.

“What counts as an emergency will be detailed later. During Covid-19, RM145 billion was withdrawn through four withdrawals, and the government decided there would be no more withdrawals.” – November 21, 2023.