KUALA LUMPUR: The Employees Provident Fund (EPF) today announced that it will pay 5.50 per cent dividend for its conventional savings and 5.40 per cent dividend for syariah savings for 2023.
This translates to a total payout of RM57.81 billion for 2023, including RM50.3 billion for Simpanan Konvensional.
The dividends are higher than for 2022, when EPF declared a 5.35 per cent dividend for Simpanan Konvensional savings and 4.75 per cent for Simpanan Shariah.
For the year ended Dec 31 2023, the EPF recorded a total investment income of RM66.99 billion, a 29 per cent increase from RM51.91 billion in 2022.
The amount is net of listed equity write downs recorded for the year.
Out of the RM66.99 billion in total investment income, RM5.72 billion were generated from mark-to-market gains of securities that have not been realised and will not be part of the dividend distribution.
EPF's investment assets continued to record a strong growth to RM1.13 trillion, up 13 per cent compared to RM1.0 trillion in 2022.
The increase comprised income from the portfolio and healthy collection of contributions of RM97.56 billion in 2023, an increase of 15 per cent from RM84.78 billion in 2022.
EPF chairman Tan Sri Ahmad Badri Mohd Zahir said the EPF was able to deliver improved dividends following a resilient performance in 2023, driven by equities investments.
"Despite the intensifying geopolitical tensions, elevated interest rates, inflation, regional conflicts and China's property sector woes, the global economy showcased resilience and fared better than expected. This allowed the EPF to actively manage its diversified portfolio and capture opportunities to enhance returns."
Ahmad Badri said after netting off the inflation rate, the real dividend for Simpanan Konvensional was 2.89 per cent and 2.51 per cent for Simpanan Shariah on a rolling three-year basis (2021-2023), exceeding the EPF's strategic target of at least 2.0 per cent real dividend over the same period.
"As a retirement fund, it is important for the EPF to consistently deliver long term above-inflation returns in order to preserve and enhance the value of its members' savings," he added.
The EPF's portfolio diversification and active fund management allowed it to deliver improved dividends for 2023.
The RM57.81 billion dividend distribution will benefit more than 16 million EPF members, encompassing individuals from both formal and informal sectors.