KUCHING: The Employees Provident Fund’s (EPF) declaration of a 6.15 per cent dividend for 2025 for both Conventional and Syariah accounts reflects continued resilience in fund management and remains strong by historical standards, said Sarawak Housing and Real Estate Developers Association (SHEDA) advisor, Datuk Sim Kiang Chiok.
Sim, who is also SUPP Stakan Branch chairman, said although the rate is slightly lower than the 6.30 per cent declared in 2024, it continues to outperform most fixed deposit and savings rates offered by Malaysian banks, which typically range between 2.5 and four per cent per annum.
“From a long-term retirement perspective, a 6.15 per cent return is commendable. EPF has maintained an average dividend close to six per cent over the past decade despite global economic volatility, inflationary pressures and market uncertainties,” he said in a statement.
He explained that contributors below the withdrawal age of 55 or 60 may feel their savings are inaccessible, but the compulsory savings structure is designed to safeguard retirement adequacy and prevent premature depletion of funds.
“The EPF should not be viewed as a professionally managed retirement vehicle that consistently outperforms ordinary bank savings accounts.
“In real terms, after adjusting for inflation, the return still provides meaningful capital growth for members.
“For contributors, aged 60 and above, the dividend offers reassurance and financial stability, particularly at a stage of life where capital preservation and steady income are crucial,” he added.
Sim said the return provides retirees with a better yield than most low-risk bank products without exposing them to the volatility associated with equity markets.
He concluded that the 2025 EPF dividend represents a solid and responsible outcome.
“EPF’s role as a reliable pillar of retirement security in Malaysia despite concerns among younger contributors about access restrictions,” he concluded.
