Cover image via AFP
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When the Employees Provident Fund (EPF) announced a 6.15% dividend rate for 2025, slightly down from 2024's 6.30%, many members responded with perspective rather than alarm
Some had expected a slightly higher rate, but were satisfied that EPF has consistently delivered dividends through market ups and downs.
One EPF member, writing on a Malaysia subreddit, said, "I would consider it good given it has consistently given this return over the past many years regardless of the market."
EPF chief executive officer (CEO) Ahmad Zulqarnain Onn pointed to two main factors behind the marginal dip: slower growth on Bursa Malaysia and the strengthening of the ringgit against the US dollar.
"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, adding, "The ringgit does impact our international holdings, and it was one of the best-performing currencies in the world, gaining 10.2%."
EPF invests globally, with some of its assets earning returns in US dollars and other foreign currencies
When those earnings are converted back into ringgit, a stronger ringgit can reduce their reported value.
As of mid‑February 2026, the US dollar was trading at around RM3.90, a level significantly firmer than in 2024, when it often hovered above RM4.20.
So, if EPF earns overseas income of USD100:
- At an older rate of RM4.43, that would have translated to RM443.
- At a stronger rate of RM3.90, the same USD100 converts to about RM390.
The investment didn't perform worse in dollar terms; a stronger ringgit translates those earnings into fewer ringgit. Applied across billions in overseas holdings, this can slightly nudge the overall dividend rate down.
A stronger ringgit can signal broader economic strength
Beyond EPF accounting, a stronger ringgit is generally positive for Malaysia. It can indicate:
- Greater investor confidence
- Lower import costs
- Reduced inflation pressures
- Stronger purchasing power for Malaysians
In this sense, what slightly trims reported returns on foreign assets may also reflect healthier currency conditions overall.
EPF is diversified across domestic and international equities, bonds, infrastructure, and other assets. Currency swings cut both ways: a strong ringgit one year may reduce reported returns, while a weaker ringgit in future years could increase them.
For members, the key takeaway is that the 6.15% dividend remains consistent, and EPF's long-term track record continues to outperform most conventional alternatives such as fixed deposits and money market funds.
