KUCHING: The Employees Provident Fund (EPF) on Saturday (Feb 28) announced a 6.15 per cent dividend for 2025 for both its conventional and shariah accounts, slightly down from 6.3 per cent in 2024, amid a weaker US dollar and moderate gains on Bursa Malaysia.
Economists, however, say the returns remain impressive given the global market uncertainty.
Professor Emeritus Dr Barjoyai Bardai from the Malaysia University of Science and Technology noted that currency fluctuations played a major role in the lower dividend.
“More than 40 per cent of EPF’s portfolio is in US dollar-denominated assets. While these investments earned substantial returns, the weaker dollar reduced net profits when converted to ringgit,” he was quoted as saying in a national news portal’s report.
In 2025, the ringgit strengthened roughly 10.1 per cent against the dollar, lowering the value of overseas earnings.
The EPF will distribute RM79.6 billion in dividends this year, with RM67.1 billion going to conventional account holders and RM12.5 billion to shariah account holders.
Barjoyai added that local market performance also contributed to the slight drop, as trading volume on Bursa Malaysia rose only 2 per cent in 2025 compared with over 10 per cent in 2024, affecting returns on domestic equities, which make up more than 36 per cent of the EPF’s portfolio.
Yeah Kim Leng of Sunway University described the 6.15 per cent dividend as “highly commendable” and consistent with EPF’s historical average of around 6 per cent.
With Malaysia’s headline inflation averaging 1.4 per cent last year, the dividend provides an inflation-adjusted return of roughly 4.75 per cent, preserving members’ purchasing power.
He also highlighted that despite global financial volatility and geopolitical tensions, EPF avoided negative returns.
