Kuala Lumpur: The Employees Provident Fund (EPF) has announced a 6.3 per cent dividend rate for both Simpanan Konvensional and Simpanan Shariah for 2024, marking the highest dividend rate since 2017, as revealed by chief executive officer Ahmad Zulqarnain Onn.

According to BERNAMA News Agency, several factors contributed to the increased dividend rate, including a 12.7 per cent rise in the Malaysian equity market and a 17 per cent growth in the global equity market. These developments coincided with Malaysia’s gross domestic product (GDP) growth rate of 5.1 per cent, leading to an increase in the EPF dividend from the previous year’s 5.5 per cent to 6.3 per cent.

The EPF has declared a total payout of RM73.24 billion for 2024, with RM63.05 billion allocated for Simpanan Konvensional and RM10.19 billion for Simpanan Shariah. The 2024 dividend rate is part of a historical trend that saw a 6.90 per cent rate in 2017 for Simpanan Konvensional, gradually adjusting to 5.50 per cent in 2023. Simpanan Shariah, introduced in 2017, started with a 6.40 per cent rate, eventually reaching 5.40 per cent in 2023.

Last year marked the first complete separation of the Simpanan Konvensional and Simpanan Shariah portfolios, allowing for independent management strategies. Ahmad Zulqarnain highlighted that while the dividend rates for both funds were identical this year, they might vary in future years depending on market conditions.

Looking ahead to 2025, Ahmad Zulqarnain noted that geopolitical and international trade risks, especially those involving the United States, make it challenging for the EPF to project future dividend rates accurately.

Regarding Akaun Fleksibel, launched in May 2024, withdrawals amounted to RM12.2 billion last year, significantly lower than the anticipated RM25 billion. A majority of the members, about 70 per cent, chose not to utilize this account, indicating a strong inclination to preserve retirement savings among Malaysians.

Ahmad Zulqarnain also mentioned a 10 per cent year-on-year increase in assets under management, reaching RM1.25 trillion in 2024. Over the past two decades, the fund has experienced a long-term growth rate of 8.5 per cent year-on-year.