EPF says dividend payout for 2017 within target

KUALA LUMPUR:The Employees Provident Fund (EPF) is confident of meeting its dividend target of 2% plus inflation for 2017.
“We’re comfortable that we’ll able to meet that target. Over the past six years, we’ve been paying 3.5% plus inflation,” its CEO Datuk Shahril Ridza Ridzuan said in a panel session at Invest Malaysia 2018 here today.
Malaysia’s consumer price index (CPI) rose 3.4% in November 2017.
The EPF paid 5.7% dividend for 2016. It is expected to announce the 2017 dividend rate next month.
Commenting on the capital market outlook, Shahril cautioned that there could be a correction in the equity market despite a strong start in 2018.
“We’ve had a good start this year, a bit more to go, but we tend to see some normalisation.”
Nonetheless, he said Malaysia’s growth remains solid supported by infrastructure projects.
On another note, Shahril said the EPF it is in the midst of obtaining sovereign status in the US, which will enable the pension fund to invest more in infrastructure and real estate investments.
“The Malaysian government has been talking quite closely with its US counterpart about our application for sovereign status, which allows us to invest more effectively in the US,” he added.