KUCHING: Nearly five million Employees Provident Fund (EPF) members withdrew RM16.6 billion from Akaun Fleksibel as of October 2025.
According to the EPF’s latest research report, close to 5.0 million members below the age of 55 had made at least one withdrawal, representing a 37 per cent take-up rate out of 13.3 million eligible members.
Withdrawal activity was strongest at the start of the programme.
In May 2024 alone, after the EPF’s restructuring exercise, 2.6 million members made withdrawals totalling RM6.01 billion before the pace eased and later stabilised at about 1.3 million members a month, with monthly withdrawal amounts settling at around RM0.42 billion to RM0.53 billion in 2025.
The early surge was largely driven by the one-off Initial Transfer period, during which 4.1 million members transferred RM14.5 billion into Akaun Fleksibel, with 88.1 per cent of them later making at least one withdrawal.
The report said this pointed to a shift from broad early participation to more selective, need-driven use.
Average withdrawal amounts later stabilised at around RM330 from January to October 2025, while the median fell to RM120 by October 2025, suggesting that most members were taking out modest sums.
Withdrawals were used mainly to meet essential needs, with 93 per cent of withdrawers using the money for daily necessities and 81.7 per cent for shocks and emergencies.
By specific use, food and other daily necessities were the most common at 70.3 per cent, followed by health treatment at 58.7 per cent and debt payments at 56.6 per cent.
These patterns suggest Akaun Fleksibel has become an important buffer for members to manage routine household needs, health contingencies and financial commitments.
By contrast, only 18.3 per cent of withdrawers reported using the funds for lifestyle purposes, indicating that discretionary spending was not the main reason members drew from the account.
The pressure was especially visible among members aged 40 to 49, with 61.7 per cent using withdrawals for debt payments.
The report said withdrawals were widely perceived as a dependable financial lifeline amid rising living costs, adding that short-term relief was closely linked to stronger feelings of financial security and overall wellbeing.
At the same time, it pointed to the long-term trade-off from repeated withdrawals.
In a 40-year simulation based on a starting monthly salary of RM1,700, total retirement savings were estimated at RM768,000 with no withdrawals, compared with RM729,000 if half of monthly Akaun Fleksibel contributions were withdrawn.
Even modest withdrawals, the report said, could significantly weaken the power of compounding over time.
The findings were based on EPF administrative records and a structured survey of members who had made at least one withdrawal from Akaun Fleksibel.
The survey was conducted from September to November 2025 and gathered 14,204 responses, with 72.4 per cent of respondents saying they intended to replenish the savings they had withdrawn.
