EPF declares a 5.5% dividend for 2023
KUALA LUMPUR: The Employees Provident Fund (EPF) announced a dividend of 5.5% for conventional savings and 5.4% for shariah, with a total payout amount of RM57.8 billion for 2023.
The rates represent an increase on the dividends of 5.35% for conventional savings and 4.75% for shariah accounts paid out in 2022.
“EPF is able to deliver better dividends following a resilient performance in 2023,” said EPF chairman Ahmad Badri Zahir.
“Despite the elevated interest rates, inflation and regional conflict, the global economy showcased resilience and fared better than expected.
“This allowed EPF to actively manage its diversified portfolio and capture opportunities to enhance returns.
“After netting off the inflation rate, the real dividend for conventional savings was 2.89% and 2.51% for shariah savings on a rolling three-year basis (2021-2023), exceeding EPF’s strategic target of at least 2% real dividend over the same period.
“As a retirement fund, it is important for EPF to consistently deliver long-term above-inflation returns in order to preserve and enhance the value of its members’ savings.”
Badri said the dividend distribution will benefit more than 16 million EPF members.
“We generated RM67.4 bil of gross investment income and the return of investment has been consistent year-on-year. The objective of EPF investment strategy is about consistency,” chief executive officer Ahmad Zulqarnain Onn said at a press conference.
“Fifty-three per cent of total income came from foreign assets and 47% was from domestic assets,” he said.
In a statement, EPF said for 2023, it recorded a total investment income of RM67bil, a 29% increase from RM51.9bil in 2022.
It said RM5.72bil was generated from mark-to-market gains of securities that have not been realised and will not be part of the dividend distribution, as it is the fund’s practice of paying dividend only out of realised income.
EPF said its investment assets continued to record a strong growth to RM1.14 trillion, an increase of 13% compared to RM1,003bil in 2022.
The increase comprised income from the portfolio and collection of contributions of RM97.6bil in 2023, an increase of 15% from RM84.8bil in 2022.
Badri said the overall market volatility in 2023 underscored the importance of EPF’s robust investment strategy and prudent risk management.
He said EPF’s strategic asset allocation paired with active portfolio management enabled it to achieve the results for 2023.
Badri also said that views are still mixed on the global growth outlook.
“Since the pandemic, the world has had several years of uncertainty and countries have demonstrated a real sense of resilience and agility.
“While the global markets presented formidable challenges, EPF’s resilient investment approach and unwavering focus on long-term value creation should set the path for it to continue to deliver strong performance and uphold its commitment to its members,” he said.
