MILLIONS of contributors to Malaysia’s Employees Provident Fund are awaiting today’s announcement of its 2025 dividend rate, with expectations running at between 5.5 per cent and 6.3 per cent despite a year marked by global economic uncertainty.
The anticipated range would place the payout broadly in line with, or marginally above, last year’s performance.
While international markets experienced volatility for much of the year, the EPF’s investment returns were seen as remaining resilient, supported in part by a market recovery towards year-end and a diversified strategy that avoids over-reliance on any single asset class.
For many contributors, however, the precise figure is less important than consistency of returns, particularly as households continue to grapple with elevated living costs.
At the same time, a growing chorus on social media has urged that the dividend be credited in full to Account 3, the EPF’s flexible account, which allows withdrawals at any time.
The calls come as families prepare for Hari Raya Aidilfitri, with many seeking additional cash flow to meet festive expenses.
The proposal has also been raised in Parliament. Datuk Seri Shahidan Kassim, the Member of Parliament for Arau, has argued that directing all dividends into the Flexible Account would ease the burden on contributors affected by cost-of-living pressures.
He said the move would be particularly helpful for those in urgent need of funds during the fasting month and in preparation for the upcoming celebrations.
However, economists have cautioned against such a step. Associate Professor Dr Ida Md Yasin of Putra Business School warned that channelling 100 per cent of dividends into the Flexible Account could undermine the retirement adequacy of the majority of contributors.
Today’s official announcement is expected not only to confirm whether dividend forecasts are accurate, but also to serve as a broader gauge of public confidence in the stewardship of one of the country’s most important retirement funds. - February 28, 2026
