Malaysia’s largest pension fund declared its highest dividend rates in seven years, attributing the success to recovering markets, resilient economic growth and sound portfolio management.
The Employees Provident Fund announced a dividend of 6.3% for 2024 for both conventional savings and the Shariah accounts — investments made in line with Islamic principles.
The total payout amounted to 73.2 billion ringgit ($22.16 billion), according to a statement on its website.
“Domestically, strong investments, a healthy labor market, and stable inflation boosted demand, while exports benefited from global stability and the tech upcycle,” EPF chairman Mohd Zuki Ali said in the statement.
Even so, the investment environment this year will face heightened risks from geopolitics, tariffs and trade wars, non-tariff barriers, climate, inflation, and technological disruptions, the statement said.
Last year’s rates compare with 2023 dividends of 5.5% and 5.4% for conventional and Shariah accounts, respectively. The fund historically has yielded smaller returns for its Shariah accounts. EPF reported total investment income of 74.5 billion ringgit, 11% higher than in 2023. Investment assets grew 10% to 1.25 trillion ringgit.
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Equities made up 67% of EPF’s total investment income in 2024, with a return of 9.9%. Fixed income instruments, at 29% of investment income, returned 4.3%. Real estate and infrastructure yielded 5.1% on a constant currency basis.
Its total number of members increased to 16.2 million, with 8.78 million active members. Malaysia’s total workforce stood at 17.3 million.
