Kuala Lumpur: The Employees Provident Fund (EPF) board today announced a dividend rate of 6.30 per cent for both Simpanan Konvensional and Simpanan Shariah, with total payouts amounting to RM63.05 billion and RM10.19 billion respectively. This brings the total payout for 2024 to RM73.24 billion, benefiting over 16 million members, the retirement savings fund stated in a release.
According to BERNAMA News Agency, for the year ended December 31, 2024, the EPF recorded a total investment income of RM74.46 billion, marking an 11 per cent increase from RM66.99 billion in 2023. This amount is net of listed equity write-downs recorded for the year. The fund’s investment assets grew to RM1,249.71 billion, a 10 per cent rise from RM1,135.82 billion in 2023.
“This increase was driven by portfolio income and net contributions of RM108.22 billion, an 11 per cent increase from RM97.56 billion in 2023,” the statement read. Chairman Tan Sri Mohd Zuki Ali expressed satisfaction with the higher dividends for 2024, attributing the growth to recovering global and domestic markets, resilient economic growth, and sound portfolio management.
“Our diversified investment strategy allowed us to capitalize on growth opportunities, optimize returns, and reinforce the long-term financial security of our members,” Mohd Zuki said. Domestically, strong investments, a healthy labor market, and stable inflation boosted demand, while exports benefited from global stability and the tech upcycle, he added.
Under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, government initiatives under Budget 2024 and strategic plans under the MADANI Economy framework have attracted foreign investments, creating a supportive environment for economic growth, Mohd Zuki noted.
The statement highlighted Malaysia’s economic growth of 5.1 per cent last year, up from 3.6 per cent in 2023, with the stock market demonstrating notable strength. The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) registered double-digit growth of 12.9 per cent and peaked at 1,678.80 points in August, the highest level since December 2020.
The EPF also noted that global performance was mixed, reflecting various economic conditions across regions. Central banks worldwide maintained relatively high interest rates to curb inflationary pressures from previous years, leading to a mixed impact on stock markets.
According to Mohd Zuki, the market volatility experienced in 2024 underscored the importance of the EPF’s Strategic Asset Allocation (SAA) in navigating challenging economic conditions. “The SAA has been pivotal in maintaining steady portfolio performance, ensuring the long-term resilience of the EPF’s investment portfolio,” he said.
The EPF recorded strong membership growth, aligning with the strength of the Malaysian labor market. New member registrations reached 475,752, increasing the membership to 16.22 million, with 8.78 million active members representing 51 per cent of Malaysia’s 17.32 million labor force. The active-to-inactive member ratio improved to 54:46 in 2024.
Mohd Zuki emphasized that by broadening its reach, the EPF is strengthening social protection and retirement security, fostering greater inclusivity and resilience. The EPF’s Outreach Programme recorded encouraging growth of voluntary contributors to 1,193,396, a 32 per cent increase from 902,213 in 2023.
Additionally, the i-Saraan programme saw a strong uptake in 2024, with participation increasing 38 per cent to 529,667 from 383,082 in 2023. Total i-Saraan contributions rose significantly, increasing by 83 per cent from RM1.44 billion in 2023 to RM2.64 billion last year.
The EPF said total contributions in 2024 rose 11 per cent to RM108.22 billion, reflecting the increased number of members, wage growth, and sustained trust in the EPF. New employer registrations stood at 71,471, bringing total registered employers to 614,563.
Looking ahead to 2025, the EPF noted that the investment environment is facing heightened risks from geopolitics, tariffs and trade wars, non-tariff barriers, climate, inflation, and technological disruptions. However, Malaysia’s economy is projected to remain resilient, supported by strong domestic demand, investment growth, and sustained exports.
Mohd Zuki reaffirmed the EPF’s commitment to sustainable growth, guided by its SAA. “The EPF’s commitment is to deliver strong and consistent returns while maintaining its role as a trusted retirement savings institution,” he said.