PETALING JAYA: The 2024 Employees Provident Fund (EPF) dividend payout is expected to be declared this Saturday, according to a source from the government organisation.
The New Straits Times, citing an English daily, reported that EPF may announce higher dividends for 2024 due to strong investment performance.
A six percent payout was predicted by analysts for conventional savings and 5.6% predicted for syariah funds, reportedly supported by robust equity market performance and stable fixed-income investments in 2024.
In 2023, EPF declared a 5.5% dividend rate for conventional savings, an increase from 5.35% in 2022, with distributions up to RM50.33 billion in the face of global economic risks.
Finance Minister II Datuk Seri Amir Hamzah Azizan reportedly hinted that EPF contributors can expect better returns for 2024 compared to the previous year, also citing the organisation’s strong performance during that year.
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“If we look at its (EPF) performance up to the third quarter of last year, it is encouraging. By the third quarter, the EPF had already earned RM57.5 billion (investment income), which is better than the previous year.
“This performance will continue into the fourth quarter. The dividend will be encouraging but I cannot comment on what it will be. It will be better,“ he was quoted as saying.
Business Times reportedly pointed out that a higher dividend can reflect a strong investment performance and market stability which in turn boosts confidence in Malaysia’s economic strength.
“The increased dividends also directly grow EPF members’ savings, providing greater financial security for retirement — an essential factor amid rising living costs,“ an economist was quoted as saying.
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The economist added that EPF members withdrawing their savings for various reasons such as education, medical expenses and housing would have more funds therefore, easing their burden financially.
“Consistent and attractive dividends also reinforce the importance of long-term savings through EPF, motivating more Malaysians to contribute and build their retirement funds,“ he was also quoted as saying.
