Epf Dividend Above 5 8 On The Cards

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The EPF has an estimated 16 million members with more than 8.5 million active contributors.
PETALING JAYA: A dividend of more than 5.8% is expected for conventional savings with the EPF last year, a slight increase from the 5.5% declared in 2023.
The rate for shariah savings is expected to be from 5.4% to 5.6%, according to a source in the know. Two years ago, EPF disbursed a 5.4% dividend for shariah accounts.
The source said the figures were a “safe bet” and a final figure is expected to be announced by the retirement fund in early March.
“The rates could be the highest in the last three years. The average for the last 10 years has been 6%. Whatever the case, it will definitely be much higher than last year,” the source told FMT.

The total payout for conventional accounts in 2023 was RM50.33 billion and RM7.48 billion for shariah savings.
The EPF has an estimated 16 million members with more than 8.5 million active contributors.
Recent news reports have quoted several economists saying that the likelihood of last year’s dividends being over 6% is high based on strong performance in the third quarter of 2024.
For the first nine months last year, EPF posted an investment income of RM57.57 billion, a 20% increase from RM47.86 billion during the same period in 2023.
The source said contributors should not expect the dividend to be too high as EPF is among the few pension funds in the world that give out dividends based on realised returns which are actually cashed in after the investments are sold.
“This is the profit or loss one makes after selling and investment, as opposed to unrealised returns, which are the gains or losses on investments one still holds. This is classified as total returns.
“EPF does not base dividends on total returns which include paper gains that are later determined by market performance,” the source said, in explaining EPF’s cautious approach.
The source said Singapore’s Central Provident Fund uses the realised gains approach and its average dividends for the last 10 years has been 4%. - FMT

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