Migrant workers can only access EPF savings after work permits expire, says Anwar
KUALA LUMPUR (March 4): Migrant workers, who will be required to contribute to the Employees Provident Fund (EPF), could only withdraw the savings after their work permits expire and they leave Malaysia.
The move will allow authorities to keep records of migrant workers and encourage them to leave the country once their permits expire to access their savings, Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat during the prime minister's question time on Tuesday.
"If they go missing through other means, they will not receive their savings,” Anwar said. “The condition is that the savings will only be returned to them if there is a record that they will leave the country.”
However, Anwar did not provide further details of the withdrawal mechanism, a long outstanding issue raised by migrant rights activists and employers since the mandatory contribution was announced in October last year during Budget 2025 presentation.
The EPF and the Ministry of Finance are still engaging with large companies as well as micro, small, and medium enterprises to finalise the details, Anwar said.
However, Anwar reiterated that the government's decision to introduce mandatory EPF contributions for foreign workers is aimed at reducing the country's heavy dependence on foreign labour.
He stressed that the move would not burden businesses, as the government is only introducing a minimum 2% contribution rate, one of the lowest compared to 70 other countries with similar policies.
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