Kuala lumpur: The Employees Provident Fund (EPF) is anticipated to provide a dividend rate between 6.3% and 6.5% for the year 2025, as stated by Dr. Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd. For the year 2024, the EPF declared a dividend rate of 6.3% for both its conventional and Shariah savings accounts.
According to BERNAMA News Agency, Dr. Mohd Afzanizam noted that based on the EPF's performance in the first nine months of 2025, which saw an 11% increase in gross investment income, the retirement fund is on track to offer a competitive dividend payout for the year. The EPF's prudent investment selection strategy has allowed it to effectively balance risk and return. The fund's exposure to global markets, which stands at approximately 38%, alongside a significant allocation to fixed income assets, contributes to a diversified asset mix that minimizes portfolio risk while enhancing returns.
As of the third quarter of 2025, equities and fixed income represent 46% and 45% of the EPF's total assets, respectively. The remaining assets are divided between real estate and infrastructure (7%) and money market instruments (2%). Each asset class has a specific role, with equities aiming for capital appreciation, fixed income ensuring capital preservation, and money market instruments aiding liquidity management.
Dr. Juliana Mohamed Abdul Kadir, a senior lecturer from Universiti Teknologi MARA's Faculty of Business and Management, commented on EPF's effective diversification strategy across asset classes and geographical locations, which has significantly contributed to achieving higher dividend rates. She also mentioned EPF's increased stake in IJM Corporation Bhd as evidence of its strategic investment approach. The strengthening of the ringgit has also positively impacted the fund's investments.
Juliana underscored that various external factors, such as global interest rate changes, currency stability, and geopolitical uncertainties, could influence market returns and sentiment. The rapid growth in the self-employed sector, notably with more than three million individuals aligning with the rise of gig economy workers, has bolstered voluntary contributions to the EPF.
Looking forward, she predicted that dividends could range between 5.5% and 6.5% in the coming years, contingent upon global market conditions and the effectiveness of EPF's investment strategies.