'Why should we open EPF Account 3' asks Wee Ka Siong

SHAH ALAM - MCA president Datuk Seri Dr Wee Ka Siong has raised questions about the government's proposal to establish a flexible account for the Employees Provident Fund (EPF), or Account 3, which can be accessed for withdrawal at any time.

He, who is also Ayer Hitam member of parliament (MP), said that previously contributors kept 70 percent of their income in Account 1, while Account 2 was 30 per cent for investment and shares.

He said that if Account 3 is established, there is a possibility that the dividends received by contributors will not be the same.

"When I heard the government's announcement to allow EPF contributors to open a flexible account, I was shocked and wanted to understand the real objective of its establishment.

"I understand that the savings in this account will not receive the same amount of dividends as in Accounts 1 and 2. So why do we open Account 3? "The government needs to explain in detail the objective of opening this account," he said in a video posted on Facebook on Sunday.

On Oct 24, Deputy Finance Minister Datuk Seri Ahmad Maslan during a question and answer session in Dewan Rakyat on Monday, said that Account 3 of the EPF can be accessed by all members regardless of whether they are in the B40, M40, or T20 group at any time, in particular in an emergency.

He said the move was to benefit and ease the financial burden of the people when facing unexpected needs.

Commenting further, Wee said if the government wants to solve the issue of cash liquidity in the stock market, the act of creating Account 3 is not a good solution.

He said that if contributors have to keep money in the flexible account, he feared that it will burden the people.

"If Account 3 is opened, it will bring profit to the contributors. So think about it," he said.