nope. people who already have 1 mil in their epf would not do that. You don't have 1 mil that's why you don't think like a person with 1 mil.

the reason why a person can accumulate 1 mil in their epf because they trust the system and they like the dividends. If they do not trust the system, then long ago they would have diverted their epf monies to other investment vehicles through i-invest.

people with 1 mil also do not desperately need spare cash till they need to withdraw pennies from the excess. If they really do need money then they can always withdraw from account 3, which is 10% of 1 mil i.e. 100k, still a sizeable amount.

in short, there will be absolutely no scenario that people will want to withdraw the excess, epf can raise the limit to 2 mil and these epf millionaires will still happily contribute more into it 

Just some numbers for fun and for considerations when you think of age 65 then only to starts to "enjoy" your hard earned money pot in kwsp n elsewhere.

Approximately 2.5 millions people out of 34 millions = less than 10% chance of making it. (Abt 8%)
Ha ha ha...
Ooopss, I will be 63 next year, ...coming soon liao

https://themalaysianreserve.com/2023/11/14/...ageing-society/

https://open.dosm.gov.my/dashboard/population

So far Nope...

EPF, ASM, FD, UT, TH all no tax slapped

Both perspectives and advices have their merits. It really comes down to each individual's situation, especially age and available alternatives.

For those of us still some distance away from 50, it’s probably wiser to lean toward the more flexible approach. EPF's rules have shown that they can shift, and when the goalposts move, so should we.

Personally, it doesn’t make much sense to leave say an extra 1m parked in EPF for like the next 15 years before 55, fully exposed to policy tweaks, all for a 6% pa. There are plenty of other investments that can match or exceed that, with way better control and liquidity.

For those nearer to 55 (or already past 60), the story is different. At that stage, the compounding has done its job and you have earned the compounded fruits of your effort. Now it’s more about enjoying them and managing the cashflow wisely.
But like all advices, its easier said... if I were around 60, I would still relook into my cashflow plans.. goalposts had been shifted, again and again.
(future members... best advice is just live with it... too bad...  )