GEORGE TOWN: Low savings and rising expenses are causing many in the lower-income bracket to tighten spending ahead of this year’s Hari Raya Aidilfitri. Factory operator Mohd Noor Firdaus Abdul Rahim, 31, said he worries that his Employees Provident Fund (EPF) reserves may run dry. With his savings in the EPF already low, Mohd Noor said the newly announced EPF dividend provided little boost to his funds. Under the EPF structure, 75% of contributions are channelled into Account 1 for retirement, 15% into Account 2 for pre-retirement needs, and 10% into Account 3 for flexible withdrawals. Retail assistant Andrea Tan, 24, said her EPF savings have yet to reach RM10,000 as she only entered the workforce less than two years ago.

Source: The Star March 02, 2026 05:39 UTC