KUALA LUMPUR (March 1): The Employees Provident Fund (EPF) has declared a dividend rate of 6.3% for conventional savings, the highest since 2017 when it declared a 6.9% dividend, and also 6.3% for shariah savings for the financial year ended Dec 31, 2024 (FY2024). The dividend rate for shariah savings in 2017 was 6.4%.

These rates showed an increase from the dividend rates of 5.5% declared for conventional savings and 5.4% for shariah savings in FY2023.

The FY2024 dividends beat market forecasts for the rates to come in at 5.8% to 6.2% for conventional savings, and between 5.4% and 5.6% for shariah savings, on strong investment performance.

The EPF’s total payout for FY2024 stood at RM73.24 billion, up from RM57.81 billion in the previous year.

A breakdown of total payout showed payout for conventional savings amounted to RM63.05 billion in FY2024, while payout for shariah savings stood at RM10.19 billion. This compared with FY2023’s payout of RM50.33 billion for conventional and RM7.48 billion for shariah.

For FY2024, the EPF recorded total investment income of RM74.46 billion, up 11% from RM66.99 billion in FY2023.

The provident fund’s investment assets also grew 10% to RM1.25 trillion in FY2024, compared with RM1.14 trillion in FY2023. This increase was driven by portfolio income and net contributions of RM108.22 billion, which grew 11% year-on-year from RM97.56 billion.

The equity asset class (43.5% of assets under management (AUM)) contributed RM49.79 billion or 66.9% of total investment income, followed by fixed income (46.2% of AUM) with RM21.91 billion or 29.4%, while real estate and infrastructure’s (6.3% of AUM) contribution stood at RM1.64 billion or 2.2%, followed by money market (4% of AUM) at RM1.12 billion or 1.5%.

In a statement on Saturday, EPF chairman Tan Sri Mohd Zuki Ali attributed the higher dividends for 2024 to the recovering global and domestic markets, resilient economic growth, and sound portfolio management.

“Domestically, strong investments, a healthy labour market, and stable inflation boosted demand, while exports benefited from global stability and the technology upcycle,” he said, adding that government initiatives under Budget 2024 and strategic plans under the Madani Economy framework have also attracted foreign investments, creating a supportive environment for economic growth.