PETALING JAYA: Datuk Seri Dr Wee Ka Siong has called for an explanation from the government regarding the necessity of opening a third Employees’ Provident Fund (EPF) account. The president of the Malaysian Chinese Association (MCA) expressed concerns about the lack of dividends for savings in the third account. Dr Wee questioned the objective behind introducing a third account, especially since the first two accounts already serve different purposes.
In a video posted on his Facebook account, Dr Wee stated, “If there is a third account that will not receive dividends like the first and second accounts, why would people need to open it?” He further highlighted the potential impact on the EPF contributors and the fund itself if sudden withdrawals were made.
Dr Wee brought attention to the EPF’s investments in the share market amounting to RM665 billion, stating that sudden cash withdrawals could have adverse effects. He questioned the feasibility of opening a third account if individuals did not have sufficient savings for retirement.
In July, the EPF announced its consideration of introducing Account 3, which would allow members to make savings withdrawals at any time. The proposed account would function similar to a savings account, providing emergency cash as needed.
Currently, the EPF savings scheme structure for members under the age of 55 consists of two accounts: Account 1 and Account 2, with a percentage rate allocation of 70% and 30% respectively.
