Under the 13th Malaysia Plan (13MP), the government is considering a series of reforms, including the introduction of a monthly pension scheme. This proposal would replace the current system which allows EPF members to withdraw their full savings in one lump sum upon retirement. However, instead of enforcing a mandatory approach, the government should give members the freedom to choose or opt into the new scheme.

While MCA acknowledges that this proposed reform aims to reduce the risk of retirees depleting their savings too quickly, it also limits the freedom and flexibility of EPF members. With public concerns already voiced, we urge the government to reconsider and to listen to the rakyat. EPF savings are accumulated over many years of hard work. It is not fair for the government to dictate how retirees can use their own money. Many individuals approaching retirement may already have personal financial plans in place, and their choices should be respected.

In addition, there are notable gaps in the current proposal. If members choose monthly disbursements, the government must ensure transparent communication and the protection of members’ interests.

To reiterate, this reform, should it come to fruition, must be flexible. It must not be implemented as a rigid, one-size-fits-all policy.

Beyond the question of withdrawal methods, the government should also explore more comprehensive and effective pension solutions to help reduce elderly poverty. Only by balancing safeguarding with personal freedom can this EPF reform truly serve Malaysians and protect their hard-earned savings without limiting their rightful use.

Dato' Sri Dr Wee Jeck Seng
MCA Vice President
Member of Parliament for Tanjung Piai

1 August 2025

-MCA Comm-