Industry experts are cautioning against a proposed tiered dividend structure for the Employees Provident Fund (EPF) in Malaysia. They argue this system could inadvertently shrink the fund’s overall investment capacity, hindering its ability to generate strong returns. Concerns also exist that a tiered approach might incentivize early withdrawals as members seek to avoid lower dividend rates on larger balances. The structure is viewed by some as unfairly penalizing long-term savers who have accumulated substantial EPF funds. Experts suggest the potential downsides outweigh any perceived benefits of the proposed change. Ultimately, they believe the existing system is more effective at promoting long-term savings and maximizing investment returns for all members.