EPF has announced a higher dividend for 2023, with a rate of 5.5% for Conventional savings and 5.4% for Syariah savings. The total dividend payout for Conventional savings reached RM50.3 billion, while Syariah savings saw a payout of RM7.5 billion. This increase in dividend was supported by a 29% year-on-year rise in total investment income, which grew from RM51.91 billion in 2022 to RM66.99 billion in 2023.
In the previous year, EPF had declared a dividend rate of 5.35% for Conventional savings, with a payout of RM45.44 billion, and 4.75% for Syariah savings, with a payout of RM5.7 billion. EPF chairman Tan Sri Ahmad Badri Mohd Zahir highlighted the importance of the fund’s robust investment strategy and prudent risk management in navigating the market volatility of 2023.
Out of the total investment income of RM66.99 billion, RM5.72 billion was generated from mark-to-market gains of securities that have not been realized and will not be included in the dividend distribution. The retirement fund’s investment assets saw a significant 13% growth, reaching RM1,135.82 billion in 2023 from RM1,002.67 billion in 2022.
The increase in assets was fueled by income from the portfolio and contributions totaling RM97.56 billion in 2023, a 15% increase from RM84.78 billion in 2022. Around 62% of the investment assets were allocated domestically, generating RM31.71 billion or 47% of the total investment income, while global assets contributed RM35.28 billion or 53% of the total investment income.
EPF’s CEO Ahmad Zulqarnain Onn confirmed that the mandatory contribution rates would remain unchanged with the introduction of the flexible Account 3 as outlined in the Budget 2024. Details regarding Account 3, which allows contributors to make withdrawals at any time, are set to be disclosed in April, with the fund on track to meet this timeline.
In January, EPF separated its Conventional and Syariah savings to optimize returns through independent Strategic Asset Allocation for each portfolio. Ahmad Zulqarnain noted that this separation provided flexibility in managing the portfolios, allowing for tailored approaches to syariah and non-syariah assets.
He also mentioned that the EPF considers various factors, including the valuation of assets like the undervaluation of the ringgit, in its asset management decisions. Foreign exchange rates are just one of many factors weighed by the fund in determining whether to buy or sell an asset.
Finance Minister II Datuk Seri Amir Hamzah Azizan commended the reduction in the gap between EPF dividend rates for Conventional and Syariah savings, noting that the difference decreased from 0.6% to 0.1% in 2023. He praised the high dividend rates of 5.5% for Conventional savings and 5.4% for Syariah savings, emphasizing the positive returns for contributors.
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