The Employees' Provident Fund (EPF) announced a dividend rate of 5.50 percent for Conventional Savings with a total payout of RM50.3 billion and 5.40 percent for Shariah Savings, which amounts to RM7.5 billion.
The total amount for the year 2023 is as much as RM57.8 billion.
The rate is higher compared to 5.35 percent for Conventional Savings and 4.75 percent for Shariah Savings for 2022.
According to its Chief Executive Officer, Ahmad Zulqarnain Onn said as of December 31, 2023, the EPF recorded a higher total gross investment income of RM66.99 billion.
The amount increased by 29 percent compared to RM51.91 billion in 2022. The amount is after taking into account the depreciation of the cost of listed equity for the year in question.
He also said that the diversity of the EPF portfolio and active fund management allows us to declare a better dividend rate for 2023.
The dividend distribution of RM57.8 billion will benefit more than 16 million EPF members who include individuals from both the formal and informal sectors.
The EPF is able to deliver a better dividend yield following last year's resilient performance, with equity playing an important role in driving overall performance.
Financial year 2023 saw mixed performance in global equity markets, particularly between Asean and developed markets.
The benchmark index of developed market equities saw positive growth, even as the United States (US) Federal Reserve raised key interest rates to the highest level since the 1980s to curb inflationary pressures.
At the regional level, the FTSE Bursa Malaysia KLCI (FBM KLCI) and Asean indices saw negative growth with the FBM KLCI declining 2.7 percent.
Despite the decline, the EPF actively manages its portfolio to generate income from equity.
