For many Malaysians, EPF savings are meant to be a safety net for retirement—but what if the struggle to survive comes long before that?
With the rising cost of living, medical bills piling up, and unexpected financial hardships, some people find themselves in desperate need of their own savings.
That’s where the Flexible Account, or Account 3, was supposed to help.
But Tasek Gelugor MP Datuk Wan Saiful Wan Jan says it’s not working as intended.
Instead of easing financial burdens, he argues that the scheme has missed the mark, with many using the funds for luxury expenses rather than essential needs.
Is the money really going to those in need?
The idea behind Account 3 was simple—allow contributors to withdraw part of their EPF savings when they need it most.
But Wan Saiful believes that, in practice, it hasn’t been effective. Instead of helping those struggling to make ends meet, he says the funds are often used for non-essential purposes, reported Berita Harian.
Many people withdrawing from Account 3 are not actually struggling. They’re using the money to fund luxury activities,” he said.
“This means the policy isn’t working. What we need is a more targeted withdrawal system that ensures help goes to those who truly need it.”
To drive home his point, Wan Saiful shared real-life stories of EPF contributors.
“I met someone with RM1.3 million in their EPF account, working as a dishwasher. Another person has RM1.8 million but is bedridden in a hospital, unable to afford medical bills.
“How does this make sense? They have money saved up, yet they can’t use it when they need it the most,” he said.
While he acknowledges that retirement savings are important, Wan Saiful stressed that for some Malaysians, waiting until they turn 50 or 55 just isn’t an option.
“If you can’t even afford to survive today, how can you think about retirement? People are losing their homes, struggling to pay medical bills, and some are even forced to borrow from loan sharks. They need help today, not years down the road,” he said.
A call for a fairer, more targeted system
Given these pressing concerns, Wan Saiful is urging the government to rethink its approach.
Instead of allowing unrestricted withdrawals, he believes a system should be in place to help those facing genuine financial hardship.
“This isn’t about letting everyone take out their savings freely. It’s about making sure the people who actually need the money can access it without unnecessary delays.”
You can watch Datuk Wan Saiful Wan Jan’s statement here:
