some are >55 yrs old
some has extra cash,...sort of asset diversification
some just put a little extra % into it for retirement purpose, that amount put in does not affect their cash flow
some are near 50 yrs old, thus can take out 30% of it if and when needed at 50
etc, etc

The lowest it can get is 2.5% plus if it goes bust, so as the government then.

PIDM is a Government agency...
you trust PIDM and not trust the Govt?

https://www.pidm.gov.my/en/for-public/frequ...bout-pidm-faqs/

EPF is protected by Employees Provident Fund Act 1991
Not safe enough?

you dont have to wait till 60. 50 also can withdraw.
and the more you put, the faster you can withdraw, dont even have to wait till 50

aunties and uncles withdraw could not be due to panic only
aunties and uncles withdraw could be that they wanted to "enjoy" the fruits of their labour before the end of time
aunties and uncles withdraw could be they wanted to use that money to further the educations of their family members
aunties and uncles withdraw could be they wanted to move to a higher yielding instrument that they think could increase to ROI.
aunties and uncles withdraw could of many things other than "panic" only

If the government of the day is above the law, then you need to afraid.

so got increase limit or not to 100K?