EPF Announces 6.3% Dividend Rate for 2024
Record-High Dividend Rate Since 2017
The Employees Provident Fund (EPF) has announced a 6.3% dividend rate for both Simpanan Konvensional and Simpanan Shariah for 2024, the highest since 2017. According to Chief Executive Officer Ahmad Zulqarnain Onn, the factors determining the latest dividend rate include the 12.7% increase in the equity market in Malaysia and the 17% growth in the global equity market.
Strong GDP Growth Rate
Malaysia’s gross domestic product (GDP) growth rate was also quite strong at 5.1%. These factors led to the EPF dividend increasing from 5.5% (for Simpanan Konvensional) in 2023 to 6.3% last year. The EPF today declared a dividend rate of 6.3% for Simpanan Konvensional and Simpanan Shariah, involving payouts of RM63.05 billion and RM10.19 billion, respectively. The total payout for 2024 amounts to RM73.24 billion.
Separate Management of Funds
Last year was the first year that the EPF fully separated its Simpanan Konvensional and Simpanan Shariah portfolios, allowing for separate and different strategies to be implemented according to the asset markets under both funds. This long-term target is to have similar dividend rates, although the rates may differ from year to year.
Akaun Fleksibel Performance
Commenting on Akaun Fleksibel, which was launched in May 2024, Ahmad Zulqarnain said withdrawals from the account totalled RM12.2 billion last year, lower than the RM25 billion originally anticipated. However, 70% of the four million members did not utilize Akaun Fleksibel, and only 30% made withdrawals. The EPF is pleased with this ratio, indicating that the majority of Malaysians intend to keep their retirement savings.
Assets Under Management
The EPF’s assets under management increased 10% year-on-year (y-o-y) to RM1.25 trillion in 2024. Looking at the long-term growth rate over the past two decades, it translates into 8.5% y-o-y.
Conclusion
The EPF’s announcement of a 6.3% dividend rate for 2024 is a significant milestone, reflecting the strong performance of the Malaysian and global equity markets. With the EPF’s commitment to separate management of its funds and the intention to maintain similar dividend rates in the future, Malaysian workers can look forward to a more stable and secure retirement.
Frequently Asked Questions
Q: What is the dividend rate for 2024?
A: The EPF has announced a 6.3% dividend rate for both Simpanan Konvensional and Simpanan Shariah for 2024.
Q: What are the factors determining the latest dividend rate?
A: The factors include the 12.7% increase in the equity market in Malaysia and the 17% growth in the global equity market.
Q: How much is the total payout for 2024?
A: The total payout for 2024 is RM73.24 billion.
Q: What is the performance of Akaun Fleksibel?
A: Withdrawals from Akaun Fleksibel totalled RM12.2 billion last year, lower than the RM25 billion originally anticipated. However, 70% of the four million members did not utilize Akaun Fleksibel, and only 30% made withdrawals.