Malaysia is weighing a plan to let EPF members use Account 2 savings to buy basic medical and health insurance or takaful products.
Bernama reported that the proposal is being studied by the Ministry of Finance (MOF) through a written parliamentary reply.
Under the proposal, any withdrawal would be voluntary and limited to savings meant for health and protection needs.
MOF said Account 1, or Akaun Persaraan, would not be affected, framing the move as a way to widen access to protection without cutting into core retirement savings.
The issue was raised by Senator Datuk Rosni Sohar, who asked about the role of the planned base medical and health insurance or takaful plan and whether using EPF savings for it could affect contributors’ retirement security.
In its reply, the ministry said EPF is working to upgrade i-Lindung so the platform can eventually support the new base MHIT products.
At present, i-Lindung allows members to buy approved insurance and takaful products under EPF’s Members Protection Plan.
EPF’s official page says the platform currently covers life and critical illness protection, including products for family members through the KWSP i-Akaun app.
The proposal also sits within the government’s RESET strategy, which includes a standardised base MHIT plan aimed at making essential private healthcare coverage more affordable and sustainable.
Official materials say the product is expected to be launched in early 2027, with a pilot scheduled for the second half of 2026.
The ministry said healthcare reforms will be introduced in stages as the government works with industry stakeholders on a broader overhaul of the system.- FINTECH NEWS MALAYSIA
