Minimal short-term impact on house owners from new EPF initiative, says Rehda

Source: The Star

PETALING JAYA: The latest initiative by the Employees Provident Fund (EPF) to restructure accounts will not have much short-term impact on prospective homeowners, says Real Estate and Housing Developers Association (Rehda) president Datuk NK Tong.

According to Tong, this was because individuals can still use EPF funds to buy homes by combining 10% from Account 3 with 15% from Account 2.

"Buying a home is a long-term investment that can also build up significant savings for retirement, if approached responsibly.

"Part of that responsible approach is to consider using the funds in their EPF account prudently, for the purchase of a home," he said on Friday (April 26).

Tong said it is important to understand that the primary purpose of EPF accounts is to prepare Malaysians for retirement.

"In 2022, approximately RM1.6bil was withdrawn to buy just over 60,000 homes or just over RM26,000 per home.

"(Allowing) withdrawals... for use to invest in homes over the years is also a recognition that homeownership is a good long-term approach to prepare for and enhance retirement savings," Tong added.

Starting May 11, EPF members will have their accounts restructured from two to three.

Contributions will also be split three ways: 75% will go into Akaun Persaraan (Account 1), 15% into Akaun Sejahtera (Account 2) and 10% into Akaun Fleksibel (Account 3).

Funds in Akaun Sejahtera can be used for housing, healthcare, education and insurance.