Withdraw EPF Money for Personal Investment


Employees Provident Fund (EPF) allows qualified members to make their own investment using a portion of their EPF savings for potentially higher returns. However, bear in mind that the risks for such investments are higher. Members are to bear these risks and EPF is not going to compensate if members suffer losses from the investment made.

Before you make any decision in investing your EPF money, please remember that EPF is oblige to give 2.5% return per annum. Make a comparison on the fund choosen past performance against EPF dividend prior to investing. View “Historical EPF Dividend Rates” for comparison purpose.

If you already made up you mind to invest then you have to follow the following guidelines,

  1. Members have not reached the age of 55 years.
  2. The maximum allowable invested amount is 20% from the excess money above the Minimum Basic Saving amount.
  3. Fund only can be invested through external fund managers appointed by the Ministry of Finance.
  4. Investments can be made at every three months from the date of the last transfer.
  5. Members are not allowed to do direct investment such as purchase shares directly from the stock market.

Item 2 above is subjected to

  • Members must have more than Minimum Basic Saving amount or at least RM5,000 in Account 1.
  • Minimum amount per withdrawal is RM1,000.
  • The calculation is according to formula below.

Amount Allowable = 20% x (Account 1 – Basic Saving)

If you have online EPF i-account, you also can check the allowable withdrawal amount under “Withdrawal” menu or to be precise “Withdrawal Eligibility” menu.

Basic Saving Amount Table

Basic Savings is an amount of savings to be put aside in Account 1 progressively at various pre-determined age levels so as to enable a member to accumulate a minimum savings of RM120,000 at age 55 years.



Basic Savings




Basic Saving


18 1,000 37 34,000
19 2,000 38 37,000
20 3,000 39 41,000
21 4,000 40 44,000
22 5,000 41 48,000
23 7,000 42 51,000
24 8,000 43 55,000
25 9,000 44 59,000
26 11,000 45 64,000
27 12,000 46 68,000
28 14,000 47 73,000
29 16,000 48 78,000
30 18,000 49 84,000
31 20,000 50 90,000
32 22,000 51 96,000
33 24,000 52 102,000
34 26,000 53 109,000
35 29,000 54 116,000
36 32,000 55 120,000

Examples How To Calculate The Allowable Investment Amount

Member Age Savings In Account 1


Basic Savings (RM) Computation: Savings In Account 1- Basic Savings x 20% Member’s Eligibility
A 22 4,000 5,000 Not qualified as the savings is lesser than the basic savings required.
B 22 8,000 5,000 (8,000-5,000) x 20% = RM600 Not qualified as the savings is lesser than required minimum investment amount of RM 1,000.
C 25 20,000 9,000 (20,000-9,000) x 20% = RM2,200 Qualified as the savings is more than the basic savings and minimum limit.
D 40 40,000 44,000 Not qualified as the savings is lesser than the basic savings required.
E 45 100,000 64,000 (100,000-64,000) x 20% = RM7,200 Qualified as the savings is  more than the basic savings and minimum limit.

List of Approved Fund Manager

List of Approved fund can be obtain in EPF website.


Below are the required documentation to be submitted to the choosen fund manager

  • Completed Form KWSP 9N (AHL).
  • ‘Penyata Caruman Yang Boleh Dilaburkan’ statement – obtain from EPF office.
  • Copy of Member’s Identification Card/Smart Card or Police Identification Card

Once a member’s application is processed, EPF will transfer the amount of savings that can be invested directly to the fund manager concerned within 21 days after the application is received by the EPF.

Exit from the External Investment

Once invested in the external fund, and later on you decide to end the investment, all the money including the profits have to transfer back to EPF account. Members are not allow to utilize the money for personal use.

More Information

If you need more information kindly browse through EPF website.

1 comment… add one
  • Its been a mystery as to why the EPF board has refused to allow contributors to use money in Account II to purchase H&S insurance. But they do allow withdrawals to pay for hospital bills for self. Its strange why withdrawals which have teh tendency to wipe out savings are allowed but withdrawals to pay for H&S insurance premium are not favoured.


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