KUALA LUMPUR: The Employees Provident Fund (EPF) is expected to announce details of Account 3, which allows flexibility in withdrawing money from the EPF, this Sunday.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the EPF will explain the division mechanism and how it can be withdrawn, after the dividend distribution announcement.
He was responding to a supplementary question from Khairil Nizam Khirudin (PN-Jerantut) on the status of Account 3, in the Dewan Rakyat yesterday.
Currently, EPF allows withdrawals from Account 2 for specific purposes, such as housing and education.
The Account 3 is expected to allow for withdrawals at any time.
Analysts believe that less than 10 per cent of the total sum of EPF contribution will be allotted for Account 3, with it likely having lower dividends.
In November 2023, Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid told Business Times, given the expected short tenure of the money kept in Account 3, it would seem likely that it would command lower returns than the other other accounts, which are not as easily withdrawn from.
EPF will announce its dividend distribution for 2023 this Sunday, Mar 3, 2024.
Most economists polled by Business Times expect higher dividends than 2022 to be announced.
In 2022, the EPF announced a dividend of 5.35 per cent for conventional savings and 4.75 per cent for syariah savings.