16/04/2026

THURSDAY | APR 16, 2026

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Soaring cost of living raising EPF withdrawals

forwarded to social media platforms. “Of the total, 54 investigation papers have been opened, with 12 submitted to the Attorney-General’s Chambers and not pursued further, while 42 cases remain under investigation,” he noted. “The public is reminded that fuel price updates are only announced every Wednesday at 6pm or 7pm via official channels, and any information released outside this timeframe is likely false.” In a separate matter, Fahmi said following the implementation of the work-from-home policy for the federal public service nationwide yesterday, Anwar has instructed the chief secretary to the government to monitor its implementation. He said these include verifying employee presence, while ensuring public-facing services, particularly counter operations, continue as usual. Remote work policy leaves public services unaffected KUALA LUMPUR: The country has implemented a nationwide work-from-home (WFH) policy for federal civil servants, beginning yesterday, as part of a strategic response to the global energy crisis triggered by the West Asia conflict. While most government offices now operate with minimal staff, public services continue to run smoothly, particularly counter transactions at Urban Transformation Centres, Immigration and police departments. Putrajaya, the federal administrative capital, appeared quieter than usual, with most ministry staff working remotely. Government buildings were in low power mode, with dimmed lighting and reduced lift operations. Civil servants reported adapting well, citing structured workflows, online attendance systems and VPN access to maintain productivity. Officers are required to log tasks, check in hourly and prioritise core duties, ensuring continuity of essential functions. The policy applies to federal civil servants in Putrajaya, Kuala Lumpur, Selangor and state capitals who live more than 8km from their offices. It excludes staff in security, defence, health and education sectors. WFH days vary depending on state holidays: Tuesday to Thursday for states with Sunday holidays, and Monday to Wednesday for states with Friday holidays. Civil servants across states shared positive experiences following a nationwide check by Bernama. In Kedah, past pandemic WFH practices helped staff prepare more systematically. In Selangor, attendance is tracked online, with staff ready to return to offices if required. Penang civil officers reported smooth operations using the SPOT Me geolocation system. Negeri Sembilan’s city council maintained open counters despite rotational WFH for over 200 staff. Pahang officials said the system improved task management while ensuring readiness to return to office when needed. Perak’s secretary emphasised that the rollout balances energy savings with service efficiency. In contrast, states such as Malacca, Perlis, Kelantan and Johor saw limited adoption as most civil servants live within commuting distance. Sarawak faced challenges due to weak internet and electricity in rural areas, restricting WFH to about 30% of staff. In Sabah, eligible officers welcomed the policy as practical relief from long commutes and rising living costs. IT staff noted improved efficiency for technical tasks, while others highlighted savings on fuel and better focus at home. The WFH initiative is seen as a cost saving, energy efficient measure that preserves public service delivery while easing burdens on civil servants. Experiences from the Covid 19 pandemic have helped staff adapt quickly, although uneven adoption across states reflects infrastructure and demographic differences. – Bernama

PETALING JAYA: Mounting cost-of-living pressures are forcing lower-income Malaysians to rely on their Employees Provident Fund (EPF) Flexible Account 3 savings for daily survival as wages fail to keep pace with rising expenses. Putra Business School economist Assoc Prof Dr Ida Md Yasin said the high frequency of withdrawals among lower-income contributors reflects structural income constraints and individual financial behaviour. “Insufficient income relative to rising expenses is a key driver, but spending discipline also plays a role. “At the end of the day, individuals must try to ensure their income is equal to or exceeds their expenses. If not, they may rely on withdrawals or debt.” She said EPF Account 3 effectively functions as a social safety net, given that its design allows contributors to access part of their savings when needed. “The moment withdrawals are permitted, it means contributors are allowed to spend part of their savings. “However, the remaining balance is still meant for retirement,” she said, adding that the facility has largely achieved its intended purpose. She also pointed to inflationary pressures as a key driver, saying the rise in living costs appears to be outpacing income growth, particularly among lower-income groups. “This creates a situation in which people turn to their savings for immediate needs. But it is not solely about inflation as individual spending patterns and financial priorities also matter.” Ida added that withdrawals could, in some cases, serve as a short-term coping strategy, provided individuals are able to rebuild their savings through higher income and disciplined financial management. “However, repeated withdrawals will gradually reduce retirement savings. Retirement planning requires a long-term perspective,” she noted. For Harith Kamal, who earns below RM3,000 a month, EPF withdrawals have become necessary to cope with rising daily expenses. “It is mainly for daily expenses. My salary is not enough to cover basic needs, such as food, fuel and tolls. “With the current economic situation, things have become even more difficult,” he Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has instructed the Finance Ministry to immediately review the process of targeting diesel subsidies using a mechanism similar to that implemented for Budi95. Speaking at a weekly press conference yesterday, Communications Minister Datuk Fahmi Fadzil said the ministry is set to present its findings either at the next council meeting or at the Cabinet meeting in the coming week. Economy Minister Akmal Nasrullah Mohd Nasir on Tuesday announced that targeted diesel assistance has been enhanced to ease the burden on vulnerable groups. Incentives for padi farmers have been raised to RM300 per hectare per season, while cash assistance for farmers, smallholders and Ű BY QIRANA NABILLA MOHD RASHIDI AND HARITH KAMAL newsdesk@thesundaily.com

o Economist points to inflation, individual spending patterns, financial priorities as contributing factors

The work-from-home policy applies to federal civil servants in Putrajaya, Kuala Lumpur, Selangor and state capitals who live more than 8km from their offices. – ADAM AMIR HAMZAH/THESUN

“It made more sense to use the funds to clear the debt rather than let it accumulate,” she said, adding that the withdrawal was also influenced by a period of temporary unemployment. While she said her current income is sufficient for now, she expressed concern about future affordability, particularly with family planning and broader economic uncertainty. “The money is meant for retirement. This was just a temporary solution. This experience was a wake-up call. It reflects poor financial planning and I would avoid doing it again unless absolutely necessary.” Earlier, data from EPF showed that contributors earning below RM3,000 made up 51.1% of withdrawals from the Flexible Account, but accounted for only 28.6% of total withdrawal value. In contrast, those earning RM10,000 and above comprised just 4% of withdrawals, yet contributed 17.7% of total withdrawals, indicating more strategic use of the facility among higher-income contributors. The Flexible Account was introduced in May 2024 as part of a broader restructuring of members’ savings. for biodiesel blending.” Fahmi, who is government spokesperson, said Australian Prime Minister Anthony Albanese will undertake an official visit starting today, with the aim of strengthening bilateral relations and witnessing the signing of several memoranda of understanding. “Discussions between the leaders of Malaysia and Australia will, among others, focus on the global energy crisis affecting the world, with further details to be announced following the meeting scheduled for tomorrow.” Fahmi also revealed that the Malaysian Communications and Multimedia Commission has identified 441 pieces of false content related to the global energy crisis from March 29, as of 7am yesterday. He said public complaints have been lodged and takedown requests have been also

said, adding that he has made withdrawals for two consecutive months just to get by. He said even after cutting back on non-essential spending, he still struggles to make ends meet. “I try to avoid eating out, but even groceries are expensive now. Bills are also high and transport costs, especially fuel, make it even tougher. I am barely making ends meet.” Having already depleted his personal savings, Harith said withdrawals from EPF have become unavoidable to cover essential and work-related expenses. “Of course I am worried about my retirement savings. But right now, I need to survive. I do not really have a choice. “Earning below RM3,000 while handling significant responsibilities feels unsustainable. Higher pay would at least give me room to plan ahead and set aside emergency funds.” Meanwhile, Nur Nafisah Hamdan, who earns above RM3,000, said she turned to EPF withdrawals as a strategic step to manage financial obligations. She said the decision was driven by a need to settle debt carrying monthly interest rates higher than EPF dividends. eligible diesel vehicle owners has been increased from RM300 to RM400 per month. Enforcement will also be intensified to curb leakages, hoarding and smuggling of controlled fuel. “The Cabinet also reviewed the biodiesel aspect, in which the biodiesel blending rate has been decided to be increased from B10 to B15, beginning with a B12 blend, without incurring any additional cost to the government and by utilising existing biodiesel blending infrastructure,” said Fahmi. He added that the Plantation and Commodities minister has informed the Cabinet that the current infrastructure for B20 biodiesel is available throughout Sarawak except in Bintulu, and is also present in Labuan and Langkawi. “The government will examine the next steps and Akmal will conduct a site visit on Saturday to observe the base materials used

Anwar orders review of targeted diesel subsidy process