EPF declares 6.3 pct dividends for 2024, RM73.24 bln to be distributed to members

KUALA LUMPUR (March 5): The Employees Provident Fund (EPF) Board has declared a dividend rate of 6.30 per cent for both Simpanan Konvensional and Simpanan Shariah, with a total payout of RM73.24 billion.

This includes RM63.05 billion for Simpanan Konvensional and RM10.19 billion for Simpanan Shariah, reinforcing EPF’s commitment to delivering strong and consistent returns to its members.

For the year ending 31 December 2024, EPF recorded a total investment income of RM74.46 billion, marking an 11 per cent increase from RM66.99 billion in 2023.

This impressive growth highlights EPF’s ability to navigate complex economic environments while ensuring long-term financial security for its members.

Additionally, EPF’s investment assets grew by 10 per cent to RM1,249.71 billion, driven by portfolio income and net contributions totaling RM108.22 billion.

EPF chairman Tan Sri Mohd Zuki Ali emphasized that the higher dividends for 2024 were driven by recovering global and domestic markets, resilient economic growth, and sound portfolio management.

He acknowledged the role of government initiatives, such as Budget 2024 and the Ekonomi Madani framework, in attracting foreign investments and fostering economic stability.

These measures have created a supportive environment that has positively impacted EPF’s performance and ensured the sustainability of returns for its members.

Domestically, Malaysia’s economy expanded by 5.1 per cent in 2024, compared to 3.6 per cent in 2023. The local stock market also demonstrated strength, with the FTSE Bursa Malaysia KLCI (FBM KLCI) achieving a notable 12.9% growth, peaking at 1,678.80 points in August, reaching its highest level since December 2020.

Global market performance, however, remained mixed, reflecting varied economic conditions across regions.

High interest rates imposed by central banks worldwide to combat inflation created challenges for equity markets but also presented opportunities for fixed-income investments.

A cornerstone of EPF’s strong performance is its strategic asset allocation (SAA), which ensures a well-balanced portfolio that maximizes returns while mitigating risks.

This disciplined approach has proven essential in maintaining resilience amidst market fluctuations.

Equities remained the primary driver of EPF’s earnings, contributing RM49.79 billion or 67 per cent of total investment income, with a return on investment (ROI) of 9.90 per cent.

The strategic and agile approach of EPF’s fund managers allowed the organization to capitalize on gains during periods of market volatility.

Private Equity investments, which represent close to 10 per cent of total equity investments, achieved an impressive ROI of 11.33 per cent.

Fixed income instruments, primarily Malaysian government securities, provided a stable foundation, generating RM21.91 billion in income with an ROI of 4.27 per cent.

The steady returns from these instruments continue to be a key pillar of EPF’s risk management strategy, ensuring that members’ savings remain secure regardless of short-term market volatility.

Additionally, EPF’s investments in Real Estate and Infrastructure yielded RM1.64 billion, with an ROI of 5.13 per cent, while money market instruments contributed RM1.12 billion, generating an ROI of 1.89 per cent. These investments provide further diversification and stability to EPF’s portfolio.

EPF’s investment portfolio is strategically diversified across both domestic and international markets.

As of December 2024, EPF’s total investment assets stood at RM1,249.71 billion, with 63 per cent invested domestically and 37 per cent globally.

Domestic investments generated RM37.02 billion, accounting for 49.7 per cent of total investment income, while global investments contributed RM37.44 billion, making up 50.3 per cent.

The fund’s exposure to international markets has proven beneficial in capturing growth opportunities, particularly in technology and emerging sectors.

By maintaining a well-diversified portfolio, EPF ensures resilience against local economic fluctuations while optimizing returns for its members.

EPF’s membership base continues to expand, reflecting growing trust among Malaysians in the fund’s ability to safeguard their retirement savings.

In 2024, new member registrations reached 475,752, bringing the total membership to 16.22 million. Among these, 8.78 million were active contributors, representing 51 per cent of Malaysia’s 17.32 million-strong labour force.

The number of voluntary contributors also saw significant growth, driven by the success of EPF’s outreach programme and initiatives such as i-Saraan. The i-Saraan scheme, which allows self-employed individuals to save for retirement, saw participation increase by 38 per cent to 529,667 members in 2024.

Total i-Saraan contributions surged by 83 per cent from RM1.44 billion in 2023 to RM2.64 billion in 2024, showcasing the increasing awareness and confidence in EPF’s role as a long-term financial security provider.

Employer registrations also witnessed a steady rise, with 71,471 new companies joining EPF, bringing the total number of registered employers to 614,563. These figures further underline EPF’s pivotal role in Malaysia’s financial ecosystem.

As the global economy navigates new challenges which include inflationary pressures, geopolitical tensions, and technological disruptions, EPF remains committed to sustainable growth and prudent risk management.

The organization’s forward-looking investment strategies, coupled with an adaptive approach to economic shifts, position it for continued success in delivering stable returns to its members.

The full separation of Simpanan Konvensional and Simpanan Shariah portfolios, which started in January 2024, enhances EPF’s ability to optimise returns for both portfolios independently.

This move ensures that investments under each scheme are aligned with their respective strategic asset allocation frameworks, thereby maximizing long-term sustainability.

Technology and digital transformation will also play a key role in EPF’s future growth. By leveraging digital tools and analytics, EPF aims to enhance its service delivery, offering members greater accessibility to financial planning resources.

Initiatives such as i-Akaun and self-service terminals (SSTs) further empower members to monitor and manage their savings with ease.

The 2024 dividend announcement is more than just a financial milestone and is a testament to EPF’s enduring commitment to the financial well-being of Malaysians.

With over 16 million members, EPF continues to be a pillar of retirement security, ensuring that its investment strategies remain robust and adaptable to changing market conditions.

“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 our members,” stated Mohd Zuki.

As Malaysia continues its economic journey, EPF remains steadfast in its mission to empower its members with financial security and a sustainable future.

Through strategic investments, strong governance, and innovative financial solutions, EPF is well-positioned to navigate the evolving financial landscape while upholding its legacy as one of the world’s most reliable retirement funds.

-Agency