Kuala lumpur: The Employees Provident Fund (EPF) dividend rate for 2026 is projected to remain competitive, thanks to the fund’s strategy based on its Strategic Asset Allocation, according to Prof Dr Ahmed Razman of Universiti Putra Malaysia. The Putra Business School Master of Business Administration programme director emphasized that the EPF’s asset allocation aims at investments generating more stable returns, less affected by foreign exchange fluctuations.

According to BERNAMA News Agency, the EPF’s recent presentation highlighted a slight increase in private equity investments and a stronger focus on international investments. This approach serves as a risk diversification strategy to mitigate the impact of the ringgit’s movements on dividend rates. Prof Dr Ahmed Razman shared these insights with the media following the EPF’s 2025 dividend announcement.

Earlier, EPF chief executive officer Ahmad Zulqarnain Onn noted that the ringgit’s strengthening against the US dollar, along with moderate performance of the FTSE Bursa Malaysia KLCI last year, contributed to a decline in the dividend rate to 6.15 percent for the 2025 financial year, down from 6.3 percent in the previous year. He explained that the stronger local currency affects overseas investment returns when converted back to ringgit.

For the year ending December 31, 2025, the EPF reported total distributable income of RM82.7 billion, marking a 9.5 percent increase from RM75.5 billion in 2024. Investment assets reached RM1.41 trillion, a 12.8 percent rise from RM1.25 trillion, driven by portfolio income and net contributions of RM66.5 billion. Despite the increased income, the dividend rate was impacted by forex translation and moderate market performance throughout the year.

Economist Prof Dr Barjoyai Bardai commented that the EPF continues to expand its investments to balance between fixed-income assets and equities, including investments in high-potential businesses. He believes this strategy will aid the EPF in generating more sustainable income over the long term. Equities constituted the main income contributor in 2025, delivering RM50.7 billion or 64 percent of the EPF’s total investment income. This was an increase from RM49.9 billion in 2024, with the return on investment moderating to 7.9 percent amid global market volatility and softer domestic conditions. Private equity investments accounted for around eight percent of equity investments, with a return on investment of 10.5 percent, as noted by Ahmad Zulqarnain.