Wow, if inflation rate is 5.4% while the kwsp returns is only 5.85%. Then the net gain of saving in kwsp is only 0.45% (to keep up with the inflation)
If inflation rate is 5.4% while the annual pay rises is 7%. Then the net gain of income is only 1.6%. ( to keep up with the inflation).
Malaysia CPI trends
https://open.dosm.gov.my/dashboard/consumer-prices

“After netting off the inflation rate, the real dividend for Simpanan Konvensional was 2.89% and 2.51% for Simpanan Shariah on a rolling three-year basis (2021-2023), exceeding the EPF’s strategic target of at least 2% real dividend over the same period. As a retirement fund, it is important for the EPF to consistently deliver long term above-inflation returns in order to preserve and enhance the value of its members’ savings,” he added."

https://www.kwsp.gov.my/en/w/epf-sustains-s...anan-shariah-ln

This! Actually EPF already providing a very good platform for us to retire comfortably. Even if you earn a very basic salary, you can still afford to retire (assuming you live a similar kind of life post retirement). You might not be rich but you're far from living on the streets.

I'm one of those who pump in the max allowed self contribution every year, I will continue to do that until atleast 55 maybe even beyond... i see very little risk as EPF now allows for anytime withdrawal as long as the account have atleast 1M inside... so i can safely withdraw everything tmr if there are rumours of EPF "shifting goalpost".
For me an avg of 5% safe bet yearly is a good return, only thing is the currency, so for shares I put all in overseas shares to hedge the currency.

Bossku is the best during his time epf dividend is so high
Don't drag epf into 1mdb pls

Wow, will that means,  kwsp would hv to redeem all it's investment holdings?
Will Local.Bursa crash?.
Will Local govt securities/bond papers need to be sold off to get cash to cater for members withdrawal too?.
Will Local Govt need to print more money to redeem those govt securities? Will MYR devalue bcos of more money printing ?

If yes, then Bad very bad hyperthetical scenario

Because EPF boss gave hints last year... During introduction of account 3....

Account 3 dividend would be lower moving forward because of its high liquidity nature....

Oz Super:

https://www.news.com.au/finance/superannuat...146158576c02fa0

But that hyperthetical kwsp question WILL never happens.

Your ""sovereign bonds in various geographical countries" will have various more risks than staying in kwsp.
Your  sovereign bonds in various geographical couriskes will be subjected to mire risks like Turkey things risk, war risk, devaluation risk, etc etc.

Talking is easy, ... how many sovereign bonds in various geographical countries are you holdings?
How much money are you  holding them VS the amount of money you and your families hv inside kwsp?

It's not always about the money, money, money.
For sending them overseas for studies. It's to give them an opportunity to explore and then make a choice whether to stay overseas or come back.
i have 2 children who studied overseas and stayed back to work. If you calculate the ringgit and AUD, my daughter has almost paid back her cost of her study within 4 years of working in Melbourne. My son, meanwhile is still paying. 
However, yeah it is not worth withdrawing your EPF just for this. If you need to dig into your EPF, then you cannot afford them studying overseas. You could mitigate this by twinning courses offered locally. Or study in Msia.

Just my 2 cents. 

i am sharing from my experience with my children. I would put it at 90% stayed back to work in Aus.
Is a proper job in Msia feeding you? But that's another discussion. Of course, work in Msia, you get EPF! 
NONE of my daughter's architect mates came back to Msia.
As for my son, he had no Msian classmates. But his wife, a pharmacy, has most friends at least 50% staying back in Aus.
She has almost paid back her costs of studies too. $38 per hour pay is not too shabby. No EPF though. 

not all kids want to study
if they dont want to study and want money to start some biz can support them lo... RM200k if allocated for study maybe use the 200k allocate into their biz start up

yeah..maybe test water and backfired - so lets see

Who so stupid want to sign up since once you reach 55 you can treat it as a high interest savings account
Why want to cuff yourself if you have good financial acumen

From 6.3% this year...5.xx still boleh tahan ler.
If goes below 5%, everyone will kecoh

Going like epf 1H results, as seen by few years ago, with the yearly increase in contributions, can get 5.4% also will be more realistic.