Dap Senator Warns Of Risky Epf Insurance Plan Potential Exploitation

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DAP Senator RA Lingeshwaran raised serious concerns over the proposal to allow withdrawals from Account 2 of the Employees Provident Fund (EPF) to pay for health insurance premiums.
ADSWhile acknowledging that the government may seek to ease financial hardship, he said it risks compromising the EPF’s mandate to safeguard Malaysians’ retirement security.
“The government’s intention may be to ease the financial burden on the people, but this move risks setting a dangerous precedent that undermines the fundamental purpose of the EPF - to ensure the financial security of Malaysians after retirement,” he said.
Lingeshwaran also sounded the alarm over potential abuse by insurance providers.
“I am also concerned about the potential for exploitation by insurance companies, which may take advantage of this policy by raising premiums, knowing that EPF funds can be tapped for this purpose.”
Instead of shifting the financial burden to future retirees, Lingeshwaran urged the government to tackle the root of the issue, which is rising healthcare costs.
“The government should focus on controlling healthcare costs and demanding greater transparency from large private hospitals that are reaping high profits, rather than pressuring small general practitioners (GPs),” he said in a statement.
Lingeshwaran pointed out that Malaysia is on the path to becoming an ageing nation, with over 15 percent of the population expected to be aged 60 and above by 2030 but EPF statistics reveal that only 27 percent of active contributors aged 55 have the minimum recommended savings of RM240,000 - the basic amount needed for a comfortable retirement.
He cautioned that allowing further withdrawals will only worsen the retirement savings gap, thereby jeopardising the dignity and well-being of our future senior citizens.
Health White Paper
The senator also questioned the implementation status of the Health White Paper passed in 2023.
“Although it outlined four pillars of national healthcare reform, no clear implementation plan has been presented to the public thus far. Without concrete action, the people will continue to bear the burden of short-term solutions that weaken our national healthcare system.
“I urge the government to stop relying on reactive measures and instead formulate bold, principled policies that can build a sustainable and equitable healthcare future for all,” he added.
ADSLast Friday, Health Minister Dzulkefly Ahmad said the government’s proposed health insurance scheme, to be funded through EPF’s Account 2, will be voluntary.
He said the initiative aims to offer EPF contributors the option of broader insurance coverage, as currently, 32 percent of healthcare costs are paid out-of-pocket by patients without insurance protection.
Previously, the Malaysian Medical Association (MMA) has urged lawmakers to discuss key reforms outlined in the Health White Paper to improve the national healthcare system.
The Health White Paper, a strategic blueprint by the Health Ministry, aims to revamp Malaysia’s healthcare system over 15 years from 2024 to 2039.
Unveiled in 2022, the Health White Paper outlines long-term structural changes, particularly by addressing systemic challenges in healthcare and proposing reforms in service delivery, financing, and governance.
The paper moved through several key milestones in June 2023 - it received the cabinet’s approval and was later tabled in Parliament by then-health minister Dr Zaliha Mustafa, following which it was passed. - Mkini

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