ECONOMISTS praised the decision by the Employees Provident Fund (EPF) on its announcement of a dividend of 6.15 per cent for both its Conventional and Shariah savings accounts for 2025, noting that the dividend demonstrates the fund’s ability to deliver real returns above inflation despite a challenging financial landscape.
The announcement, amounting to a total payout of RM79.6 billion, reflects the fund’s resilient performance in a year marked by domestic and global market uncertainties.
Khazanah Research Institute chairman Dr Nungsari Ahmad Radhi said the equity market in Malaysia climbed gradually over the year, with the benchmark index, Bursa Malaysia, reaching 1,700 at the start of 2025.
He added, “This is a positive development, but also suggests that the bourse needs more growing companies.”
Similarly, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid observed that although the dividend is slightly lower than last year’s 6.3 per cent, it continues to offer real returns exceeding the long-term inflation rate of 2.50 per cent, effectively delivering a real dividend rate of 3.65 per cent.
“What this means is that EPF members remain in a better position after accounting for inflation,” he said, adding that the last time the conventional savings dividend was 6.15 per cent was in 2018, while the Shariah savings rate surpassed the 5.9 per cent declared that year.
Economists also highlighted the fund’s strategic investment allocations.
Approximately 61.7 per cent of EPF assets are invested domestically, contributing 49.6 per cent of total investment income, while 38.3 per cent of assets are held in global investments, which accounted for 50.4 per cent of income.
Dr Nungsari noted, “This shows that global markets are providing higher returns,” while stressing the importance of strengthening the domestic market and managing exposure to international risks.
Meanwhile, the dividend announcement was welcomed by contributors nationwide, who described it as stable and reassuring for long-term retirement planning.
Nurain Kamaruddin, a 40-year-old marketing manager, said, “I hope the EPF dividend rate will remain above six per cent next year.”
In Johor, media manager Aivizanoorwani Shah Shahroni described the returns as relatively good and safe for long-term investment, while Sarawak factory security supervisor Brauselt Elden Usah said KWSP offered a secure savings instrument compared with higher-risk alternatives.
Young contributors also expressed confidence in the fund’s performance.
Electrical technician Jelson Guntalib from Sabah said, “I have no plans to withdraw; instead, I want this dividend to continue to grow in my account to secure life after retirement.”
Similarly, kindergarten teacher Syafini Halim in Perlis described the dividend as favourable, helping her steadily augment her retirement savings, while private sector workers in Penang, Selangor, and Melaka expressed trust in KWSP’s disciplined investment strategy and long-term sustainability.
Dr Nungsari added that the dividend could encourage higher voluntary contributions and strengthen retirement adequacy.
“People must understand that getting six percent is very good and trust in EPF rather than any scammer that promises double-digit returns,” he said, while noting that global monetary easing and external risks could influence the performance of the fund’s fixed-income portfolio. - March 1, 2026
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