EPF First-Half 2025 Results Suggest 5.5% Dividend, With 6% Still Within Reach

Samuel Chua

3rd September 2025 - 4 min read

The Employees Provident Fund (EPF) has posted a steady rise in investment income for the first half of 2025, strengthening the likelihood of a 5.5% dividend payout. A higher 6% dividend remains within reach, but this will depend on stronger results in the second half of the year.

Investment Income Grows in First Half

For the six months ended 30 June 2025, the EPF recorded total investment income of RM38.92 billion. This was 3% higher compared with RM37.9 billion in the same period last year.

The total includes RM0.44 billion in paper gains from foreign exchange movements. These are accounting gains that come from changes in currency values but cannot be shared with members as dividends. After removing these unrealised gains, the distributable income stood at RM38.48 billion.

In simple terms, the EPF made more money overall, but not all of it can be passed on to members.

Dividend Outlook for 2025

Based on current performance, a 5.5% dividend for 2025 appears achievable if results remain stable in the second half. A 6% dividend is still possible, but it would require better outcomes in both the third and fourth quarters.

In comparison, the EPF paid 5.5% for conventional savings and 5.4% for shariah savings in 2023 before raising its payout to 6.3% for both categories in 2024. Matching last year’s performance will be challenging.

Why First Quarter Declined

The EPF’s first-quarter 2025 results showed a 13% drop compared with the same period in 2024. This was partly because the 2024 numbers were unusually high.

In early 2024, the EPF made RM19.2 billion in distributable income, which was a one-third jump compared with the same period in 2023. For the first half of 2024 as a whole, income grew nearly 30%. With such a strong base, the year-on-year comparison for 2025 looked weaker, even though income levels remain healthy.

Different Ways of Reporting Income

The EPF reports its results in two ways. Distributable income is the amount that can actually be paid out as dividends, because it already accounts for losses and excludes paper gains. Total investment income is bigger, because it includes paper gains and does not yet deduct losses.

For the first half of 2025, the EPF shared its total investment income. However, it did not confirm whether any losses had been deducted, which means the final figure available for dividends could be lower.

The Challenge of a Larger Fund Size

Sustaining higher dividend rates is becoming more difficult as the EPF’s fund size grows. Rising wages and steady contributions have expanded the fund significantly in recent years.

At end-June 2025, the EPF’s assets totalled RM1.31 trillion. This figure is on track to reach RM2 trillion by 2030.

Although the RM73.2 billion dividend payout in 2024 set a record in absolute terms, the 6.3% rate was lower than the 6.9% declared in 2017. At that time, a payout of RM48.13 billion was sufficient to deliver higher rates due to the smaller fund base.

Contributions and Withdrawals

Gross contributions in 2Q2025 totalled RM31.32 billion. This was slightly below the RM33.54 billion in 1Q2025 but about RM4 billion higher than the same quarter in 2024.

While the EPF did not publish withdrawal figures, Ministry of Finance data suggests RM3.19 billion has been withdrawn from the newly introduced EPF Flexible Account 3 between mid-December 2024 and mid-August 2025.

CEO’s Remarks on Performance

EPF CEO Ahmad Zulqarnain Onn said the fund’s long-term diversified strategy and disciplined portfolio management were key to the results. He highlighted steady domestic contributions, a 5% rise in assets under management, and the fund’s focus on strong investments that also consider environmental, social, and governance (ESG) factors.

He also cautioned that external risks remain, citing softening global trade, unpredictable policies, renewed inflationary pressures, and shifting geopolitics as potential challenges.

Second Quarter Breakdown

For 2Q2025, the EPF reported total investment income of RM20.61 billion, a 22% increase from RM16.91 billion in 2Q2024.

Equities were the largest contributor, delivering RM13.77 billion or 66.8% of total quarterly income. Fixed income investments generated RM6.73 billion, while real estate and infrastructure added RM0.29 billion.

Foreign assets, which account for 39% of the fund’s portfolio, delivered 63% of income in the quarter. This was up from 44% in 1Q2025.

The EPF also recorded a RM0.18 billion foreign exchange translation loss in its money market instruments, reflecting the ringgit’s appreciation against the US dollar.

What’s Next

The EPF is scheduled to announce its third-quarter results in November 2025. The outcome will provide a clearer indication of whether the fund can maintain the momentum needed to support a 6% dividend payout for the year.

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