Should I use EPF Account 3 (Akaun Fleksibel) for emergencies or leave it?

I left mine untouched and here's my reasoning: the EPF dividend compounds tax-free and it's one of the few safe returns we get in Malaysia. Every RM1,000 you take out at 30 is a lot more you lose by 55 because of compounding. For emergencies I keep a separate cash buffer in a high-interest savings/fixed deposit instead, so I'm never tempted to touch retirement money. The Fleksibel account being withdrawable doesn't mean we should. Treat it as 'break glass in real emergency only', not a renovation fund. But everyone's situation differs, so do check with a financial advisor if you're carrying heavy debt.

I withdrew a bit from Akaun Fleksibel last year to clear a high-interest credit card debt, and honestly for THAT purpose it made sense because credit card interest at 18% was eating me alive, way more than EPF's ~5-6% dividend. But renovation? I'd think twice. The whole point of Fleksibel being accessible is a double-edged sword, it's too easy to raid. What I did after clearing the card: I set an auto top-up back into EPF via i-Saraan so I'm rebuilding it. Clear bad debt with it, yes. Lifestyle spending, no. This is just my experience, maybe talk to a licensed financial planner for your full picture.