KUALA LUMPUR, March 1 (Bernama) -- The Employees Provident Fund (EPF) board today announced a dividend rate of 6.30 per cent for Simpanan Konvensional, with a total payout of RM63.05 billion, and 6.30 per cent for Simpanan Shariah, with a total payout of RM10.19 billion.
This brings the total payout amount for 2024 to RM73.24 billion, benefiting over 16 million members, the retirement savings fund said in a statement today.
For the year ended Dec 31, 2024, the EPF recorded a total investment income of RM74.46 billion, up 11 per cent from the RM66.99 billion recorded in 2023. The amount is net of listed equity write downs recorded for the year.
Its investment assets grew to RM1,249.71 billion, an increase of 10 per cent from RM1,135.82 billion in 2023.
“This increase was driven by portfolio income and net contributions of RM108.22 billion, an 11 per cent increase from RM97.56 billion in 2023,” it said.
Chairman Tan Sri Mohd Zuki Ali said the EPF is pleased to announce higher dividends for 2024, driven by recovering global and domestic markets, resilient economic growth, and sound portfolio management.
“Our diversified investment strategy allowed us to capitalise on growth opportunities, optimise returns, and reinforce the long-term financial security of our members.
“Domestically, strong investments, a healthy labour market, and stable inflation boosted demand; while exports benefited from global stability and the tech upcycle,” he said.
He noted that under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, government initiatives under Budget 2024 and strategic plans under the MADANI Economy framework have attracted foreign investments, creating a supportive environment for economic growth.
The statement highlighted the Malaysian economy’s 5.1 per cent growth last year (2023: 3.6 per cent), adding that the stock market demonstrating notable strength.
It also noted that the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) registered double-digit growth of 12.9 per cent (2023: -2.7 per cent) and peaked at 1,678.80 points in August, the highest level since December 2020.
“Global performance meanwhile was mixed, reflecting diverse economic conditions across regions. Central banks worldwide maintained relatively high interest rates to curb inflationary pressures from previous years. While higher rates typically weigh on equity valuations, they also provided opportunities for fixed-income investments, leading to a mixed impact on stock markets,” the fund said.
According to Mohd Zuki, the market volatility experienced in 2024 underscored the importance of the EPF’s Strategic Asset Allocation (SAA) in navigating challenging economic conditions.
“The SAA has been pivotal in maintaining steady portfolio performance, ensuring the long term resilience of the EPF’s investment portfolio. By balancing risk and return, this approach not only safeguards the fund against market uncertainties but also supports sustainable dividend payouts for our members,” he said.
Steady membership growth reflects EPF’s expanding coverage
The EPF recorded strong membership growth, in line with the strength of the Malaysian labour market.
It said new member registrations reached 475,752, bringing its membership to 16.22 million, of which 8.78 million were active members, representing 51 per cent of Malaysia’s 17.32 million labour force.
The active-to-inactive member ratio also improved in 2024 to 54:46.
“The increase in active members was driven by the EPF’s ongoing efforts to expand coverage,” it said.
Mohd Zuki emphasised that by broadening its reach, the EPF is strengthening social protection and retirement security, fostering greater inclusivity and resilience.
Furthermore, the EPF’s Outreach Programme recorded encouraging growth of voluntary contributors to 1,193,396, a 32 per cent increase from 902,213 in 2023, he added.
The i-Saraan programme saw a strong uptake in 2024. Participation increased 38 per cent to 529,667 from 383,082 in 2023, enabling more informal sector workers to save for retirement.
Total i-Saraan contributions also saw significant growth, rising by 83 per cent from RM1.44 billion in 2023 to RM2.64 billion last year.
The EPF said total contributions in 2024 rose 11 per cent to RM108.22 billion, reflecting increased number of members, wage growth and sustained trust in the EPF.
New employer registrations stood at 71,471, bringing total registered employers to 614,563, the statement said.
Outlook for 2025
The EPF said the investment environment is facing heightened risks from geopolitics, tariffs and trade wars, non-tariff barriers, climate, inflation and technological disruptions.
It said global economic output and central bank policies will be impacted from changing trade patterns and a move away from multilateralism.
“Malaysia’s economy is projected to remain resilient, supported by strong domestic demand, investment growth, and sustained exports,” it added.
Mohd Zuki reaffirmed the EPF’s commitment to sustainable growth, guided by its SAA.
Fixed income instruments will continue to anchor the portfolio, providing stability, while domestic equities will play a key role in generating returns., he said
“The EPF’s commitment is to deliver strong and consistent returns while maintaining its role as a trusted retirement savings institution. As the economy evolves, we carefully manage risks to ensure both short-term gains and long-term stability, allowing us to offer fair and competitive dividends to over 16 million members,” he said.
-- BERNAMA
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