EPF posts RM63.99bil investment income in 9M25, up from RM57.57bil, potentially raising dividend to 6.5%
PETALING JAYA: The Employees Provident Fund (EPF) is positioning itself to deliver a potentially higher dividend to members in 2025, following robust investment returns in the first nine months of the year that outpaced 2024 performance.
Malaysia’s largest pension fund recorded RM63.99 billion in investment income for the nine months ending September 30, 2025 (9M25), representing a significant increase from the RM57.57 billion achieved during the same period last year.
According to Utusan Malaysia, the fund may be able to declare a dividend of up to 6.5% if current performance momentum is maintained through year-end, compared to the 6.3% dividend paid out in 2024.
The encouraging figures reflect particularly strong third-quarter results, with 3Q25 investment income alone reaching RM25.07 billion—a substantial 27% increase from the RM19.67 billion recorded in the corresponding quarter of 2024.
Dr Mohamad Idham Md Razak, senior lecturer at Universiti Teknologi Mara’s (UiTM) Department of Economics and Financial Studies, expressed optimism about the fund’s ability to deliver an improved dividend when speaking to the Malay daily.
“There is a possibility that EPF’s dividend will increase this year because investment income shows a stronger performance compared to last year,” he stated, noting that the fund’s steady investment momentum throughout the year supports prospects for enhanced returns to members.
Idham highlighted that investment returns from the first to third quarters demonstrated clear gains, primarily driven by a recovery in global equity markets and positive contributions from foreign asset holdings.
“Investment income so far shows stable growth, and there is a possibility the dividend will be slightly above last year’s level if market momentum stays positive,” he explained.
He emphasised that global equities remain the largest contributor to EPF’s investment gains, with the fund benefiting from a well-diversified portfolio that balances both domestic and international assets.
The academic noted that EPF’s cautious portfolio management approach during the economic recovery phase enabled the fund to capitalize on emerging opportunities while effectively limiting downside risks—a strategy that has proven beneficial in the current market environment.
Additionally, growth in total member contributions and increased participation through voluntary savings schemes have strengthened EPF’s overall financial position, enhancing its capacity to deliver more competitive dividend rates to members.
However, Associate Professor Dr Aimi Zulhazmi Abdul Rashid from UniKL Business School offered a more measured perspective, suggesting that the final dividend could potentially match last year’s level despite the 11% increase in nine-month investment income.
“This is because many other factors must be taken into account, such as the strengthening of the ringgit against the US dollar at the end of the year,” he cautioned.
Aimi pointed out that foreign investments continue to represent a substantial portion of EPF’s returns, even though domestic allocations constitute a larger share of the overall portfolio. Currency fluctuations, therefore, remain a significant variable in determining final returns.
Despite the need to consider multiple factors, Idham maintained that the sustained growth in investment income observed since early 2025 makes a marginally higher dividend feasible, provided market conditions remain favorable through the year’s end.
“Strong returns entering the final quarter indicate the fund is on firm footing to deliver improved performance,” he said, expressing confidence in EPF’s ability to maintain its trajectory.
The potential for a higher dividend carries significant implications for Malaysia’s 15 million EPF members, whose retirement savings depend on the fund’s investment performance.
A dividend increase from 6.3% to 6.5% may appear modest in percentage terms, but when applied to EPF’s massive asset base exceeding RM1 trillion, it translates to meaningful additional returns for members’ retirement accounts.
The stronger investment performance comes at a crucial time when many Malaysians are focused on rebuilding their retirement savings following pandemic-era withdrawals that significantly reduced account balances for millions of members.
EPF’s investment strategy, which spreads assets across various classes including equities, fixed income, real estate, and alternative investments, has proven effective in generating stable returns while managing risk.
The fund’s exposure to both Malaysian and international markets has allowed it to capture gains from global economic recovery while maintaining a strong foundation in domestic investments.
While the nine-month results paint an encouraging picture, the official dividend announcement will only be made after EPF completes its year-end assessment and finalizes its full-year performance figures.
The fund typically announces its annual dividend rate in late February or early March, following the conclusion of its financial year and comprehensive performance review.
Members will be watching closely as the final quarter unfolds, with market conditions, currency movements, and portfolio performance in the remaining months all playing crucial roles in determining the final dividend rate.
The strong 9M25 performance provides reassurance to EPF members that their retirement funds continue to be managed prudently and are generating competitive returns despite ongoing global economic uncertainties.
As Malaysia’s primary retirement savings vehicle, EPF’s ability to consistently deliver solid dividends remains essential to ensuring the financial security of millions of Malaysians in their retirement years.
