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The Employees Provident Fund (EPF) is expected to announce commendable dividend rates for the 2025 financial year this coming Saturday, 28 February, providing a positive outlook for its approximately 15 million members
Sources close to the matter suggest that the board will likely declare a payout ranging between 6% and 6.2% for both conventional and shariah savings accounts. This anticipated announcement follows a series of internal meetings where the board recently convened to endorse the final figures before the official media briefing, according to Free Malaysia Today.
Last year marked a significant milestone for the pension fund when it declared a uniform dividend of 6.3% for both account types — the first instance where shariah-compliant savings matched the conventional rate
Historically, the shariah rate has trailed slightly behind its conventional counterpart due to the different asset classes and investment constraints involved. However, the current trend suggests a continued effort to narrow that gap or maintain parity, reflecting the robust performance of the fund's diverse investment strategies.
While the projected figures of 6% to 6.2% are slightly lower than some earlier optimistic forecasts — where financial analysts had estimated returns as high as 6.7% — the rates remain highly competitive within the current economic landscape.
Market observers note that these returns significantly outperform the interest rates currently offered by local financial institutions for fixed deposits.
Consequently, a growing number of Malaysians are choosing to shift their liquid assets from commercial banks into their EPF accounts to capitalise on the superior yields.
The fund currently allows members to voluntarily top up their savings by a maximum of RM100,000 per year, a facility that has seen increased patronage as bank rates linger at roughly half of what the EPF provides
This influx of voluntary contributions underscores a high level of public confidence in the fund's ability to manage volatility in both local and international markets. Over the past five years, the EPF has maintained a resilient trajectory despite global economic shifts.
To provide context to the upcoming figures, the conventional and Shariah rates stood at 5.2% and 4.9% in 2020, before rising to 6.1% and 5.65% in 2021.
Following a dip in 2022 to 5.35% and 4.75%, the rates began to climb again, reaching 5.5% and 5.4% in 2023.
If the Saturday announcement aligns with current expectations, the 2025 dividends will solidify their position as some of the strongest returns recorded in the last half-decade.
