The Employees Provident Fund (EPF) has declared a dividend of 5.50% for its conventional savings, with a total payout of RM50.33 billion, and 5.40% for its shariah savings, with its own total total payout of RM7.48 billion. This brings the overall combined payout amount for the financial year of 2023 to RM57.81 billion, benefitting more than 16 million EPF members.

Announced today by chief executive officer Ahmad Zulqarnain Onn, the EPF said that its total investment income for 2023 (ended 31 December 2023) came up to RM66.99 billion, net of listed equity write-downs for the year. This is an increase of 29% from the total of RM51.91 billion gained back in 2022. That said, the EPF shared that RM5.72 billion was generated from mark-to-market (MTM) gains of securities that have not been realised, which will not be included as part of the dividend distribution.

Aside from that, the EPF also noted that its investment assets have grown to RM1,135.82 billion in 2023 – up 13% as compared to the RM1,002.67 billion recorded in the previous year. The increase is comprised of income from the EPF’s portfolio, as well as members’ contribution of RM97.56 billion in 2023. Notably, members’ contribution saw an increase of 15%, up from RM84.78 billion in 2022.

“The EPF is able to deliver improved dividends following a resilient performance in 2023, with equities playing a significant role in driving overall performance. Despite the intensifying geopolitical tensions, elevated interest rates, inflation, regional conflicts, and China’s property sector woes, the global economy showcased resilience and fared better than expected. This allowed the EPF to actively manage its diversified portfolio and capture opportunities to enhance returns,” said chairman of the EPF, Tan Sri Ahmad Badri Mohd Zahir during the press conference.

Tan Sri Ahmad Badri also emphasised the importance of the EPF’s portfolio diversification via its strategic asset allocation (SAA) to help deliver the improved dividends for 2023. This – paired with active fund management as well as prudent risk management – will continue to contribute to the provident fund’s reputation as one of the country’s trusted institutional investor, as well as enable members to achieve greater financial security during retirement years.

Aside from announcing the dividends, the EPF shared as well that as of January 2024, it has separated its conventional and shariah savings portfolios in relation to their shariah-compliant investment. This is to enable each portfolio’s returns to be optimised in the long run, with each having an independent SAA. “The separation also ensures that assets under both Simpanan Shariah and Simpanan Konvensional are well diversified across asset classes, geographies, markets, and industries to ensure sustainable returns,” said the provident fund.

Finally, the EPF stated that the crediting of the dividends for both savings will be completed by today. Members may check their accounts via the i-Akaun app, or get their statement from the self-service terminal (SST) nationwide.

• TAGS:
• Employees Provident Fund (EPF)
• Employees’ Provident Fund
• EPF Dividend 2023
• EPF Dividends
• KWSP
• Tan Sri Ahmad Badri Mohd Zahir