Cover image via Hairul Anuar Rahim/New Straits Times & Bernama
Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.
The Employees Provident Fund (EPF) has explained why its 2025 dividend rate fell slightly below 6.30% recorded in 2024
EPF chief executive officer (CEO) Ahmad Zulqarnain Onn said two key factors contributed to the dip: slower growth on Bursa Malaysia and a stronger ringgit against the US dollar.
The EPF declared a dividend rate of 6.15% for conventional savings for 2025, with a total payout of RM67.1 billion.
For shariah savings, the dividend rate was also 6.15%, with payouts totalling RM12.5 billion, bringing the total distribution for 2025 to RM79.6 billion.
Both are lower than the 6.30% dividend rate declared the year before.
Last year, EPF paid out RM63.05 billion for conventional savings and RM10.19 billion for shariah savings at the 6.30% rate.
Slower market growth and currency movements
According to Ahmad Zulqarnain, Bursa Malaysia's Kuala Lumpur Composite Index (KLCI) grew 2.3% last year, compared to about 12.9% in 2024.
The slower market performance affected returns.
At the same time, the stronger ringgit also affected EPF's overseas investments.
"And also the strengthening of the ringgit against the US dollar, which impacted the value in ringgit of our income from dollar assets," he said.
He added that currency movements played a notable role in overall performance.
"The ringgit does impact our international holdings, and it was one of the best-performing currencies in the world, gaining 10.2%," he said.
In short, while total payouts rose due to a larger fund size, the dividend rate itself edged lower compared to the previous year, shaped largely by market growth and currency effects.
EPF chief executive officer Ahmad Zulqarnain Onn.
Image via Bernama