Less than 40 pct of EPF accounts active

Data from the Employees Provident Fund (EPF) show that only seven million account holders of the total 17.8 million are active accounts. That represents just 39.3 percent of the total account holders that are active.

The remainder are either non-active accounts (6.7 million) or dormant accounts (4.1 million).

These statistics arise from EPF announcing a reclassification of data involving the number of EPF members and employers. The change came into effect in the third quarter of this year.

The reclassification exercise is to distinguish between accounts with savings and those with zero savings (dormant accounts). Data on employers, meanwhile, is reclassified between those with 'employer' status as stipulated in the EPF Act 1991 and the self-employed status.

The EPF's database system will automatically update any changes to the members' or employers' account status. The reclassification of data does not affect contribution amount or withdrawal statistics.

In a media briefing Thursday, EPF CEO Datuk Shahril Ridza Ridzuan said, "The EPF deals with vast amount of data as the number of our members and employers have grown significantly over the past 66 years. The reclassification exercise is necessary to provide greater transparency and clarity to the status of accounts and to ensure our statistics conform to the current provision in the EPF Act.

"Starting this quarter onwards, the total number of EPF members will be based on accounts with savings only. This will later be reflected in the upcoming EPF Annual Report 2017."

He added that all dormant accounts would remain open for members below 75 years old in order to provide them the opportunity to re-contribute to their account for their retirement well-being.

The table below shows the updated data arising from the reclassification exercise and explanation for the changes: