Malaysia’s EPF announces 6.3% dividend, highest in seven years

MALAYSIA: Malaysia’s Employees Provident Fund (EPF) declared a 6.3 per cent dividend for 2024, its highest in seven years. The payout applies to both conventional savings and Shariah accounts, marking an increase from 5.5 per cent and 5.4 per cent in 2023, as reported by The Edge Singapore.

The fund announced a total payout of RM73.24 billion (S$22.20 billion), with RM63.05 billion for conventional savings and RM10.19 billion for Shariah accounts, according to a press release on its website.

EPF chairman Mohd Zuki Ali attributed the higher dividends to recovering global and domestic markets, resilient economic growth, and sound portfolio management. “Domestically, strong investments, a healthy labour market, and stable inflation boosted demand, while exports benefited from global stability and the tech upcycle,” he added.

However, heightened risks from geopolitics, tariffs and trade wars, non-tariff barriers, climate, inflation, and technological disruptions will affect the investment environment in 2025, the statement said.

Historically, Shariah accounts have seen lower returns.

For the year ended Dec 31, 2024, EPF recorded a total investment income of RM74.5 billion, an 11 per cent increase from RM66.99 billion recorded the year before. Investment assets rose 10 per cent to RM1.25 trillion from RM1.14 trillion in 2023.

Equities contributed 67 per cent of total investment income in 2024 with a 9.9 per cent return, while fixed-income instruments made up 29 per cent and returned 4.3 per cent. Real estate and infrastructure investments saw a 5.1 per cent return on a constant currency basis.

Malaysia’s workforce totals 17.3 million. EPF’s members grew to 16.2 million, with 8.78 million active members. /TISG

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