Economist: EPF dividend seen at 6.5% for 2025

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Economist: EPF dividend seen at 6.5% for 2025
EPFDividendrateRetirementfund

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KUALA LUMPUR: The Employees Provident Fund is expected to deliver a dividend rate of between 6.3% and 6.5% for 2025, says Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. For the year 2024, the EPF declared a dividend rate of 6.

3% for both its conventional and syariah savings accounts. Mohd Afzanizam said based on the EPF’s nine-month 2025 performance, which recorded an 11% increase in gross investment income, the retirement fund remains on track to post a respectable dividend payout for the year. “The EPF’s conservative and responsible investment selection criteria have enabled it to optimise its risk-return trade-off. “Its exposure to global markets, totalling about 38%, as well as its greater allocation to fixed income assets, provides a well-balanced asset mix and geographical diversification, and this helps to minimise portfolio risk while maximising investment returns,” he told Bernama. Mohd Afzanizam said that as of the third quarter of 2025, equities and fixed income accounted for 46% and 45% of the EPF’s total assets, respectively, followed by real estate and infrastructure at 7%, and money market instruments at 2%. “Each asset class serves a distinct purpose within the portfolio. Equities are primarily aimed at capital appreciation, while fixed income instruments provide capital preservation, and money market instruments support liquidity management,” he said. Mohd Afzanizam noted that equities usually carry a higher risk premium, while fixed income and money market instruments present comparatively lower risk.Meanwhile, Universiti Teknologi Mara, Faculty of Business and Management senior lecturer Dr Juliana Mohamed Abdul Kadir said the EPF’s strategy of diversifying its asset classes, along with its investments both domestically and internationally, has greatly helped in achieving higher dividend rates. “In addition, the equity market has continued to strengthen, as seen when EPF increased its shareholding in“The strengthening of the ringgit against other currencies has also played an important role in boosting the country’s investments,” she said. Juliana highlighted that factors such as changes in global interest rates, currency stability, and geopolitical uncertainties, including adjustments to the United States-imposed tariff rates and trade policies, could affect returns and market sentiment. She said that the rapid growth of the self-employed segment, which now exceeds three million individuals, in line with structural changes in the labour market such as the rise of gig workers, has been an important factor behind the increase in voluntary contributions. “I foresee dividends possibly moving within the range of 5.5% to 6.5% in the coming years, with fluctuations depending on global market performance and the efficiency of EPF’s own investment strategy,” she added.

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