KUALA LUMPUR, Nov 13 — A strong third-quarter performance in 2024 has raised expectations that the Employees Provident Fund (EPF) dividend rate could exceed 6 per cent this year, according to financial experts.

Socio-Economic Research Centre executive director Lee Heng Guie said a higher dividend rate of at least 6.25 per cent is likely for 2024, based on the fund’s robust investment income so far this year,The Star reported today.

“Going by the strong investment income in the first nine months, we expect the full year’s total investment income will exceed 2023’s RM67 billion, given the still buoyant performance in both domestic and overseas equity markets,” Lee was quoted as saying.

The EPF posted RM57.57 billion in investment income for first nine months, a 20 per cent rise from RM47.86 billion during the same period in 2023.

Lee, however, cautioned that 2025 might pose more challenges for the EPF’s investment performance.

“The prospects of a stronger investment income next year might be slightly more challenging, given the near-term uncertainties arising from ‘Trumponomics 2.0’, which may cause volatility in the equity and foreign-exchange markets,” he was quoted as saying.

UCSI University Malaysia associate professor for finance Liew Chee Yoong said dividends approaching or exceeding 6 per cent this year are likely achievable.

“EPF’s diversified portfolio, particularly its strong performance in equities (contributing RM18.32 billion in the third quarter of 2024 alone) and its solid income from fixed income instruments, indicates an optimistic outlook for dividend potential,” Liew told The Star.

Over the past decade, the EPF has recorded an average dividend of 5.95 per cent for its conventional scheme, while the shariah scheme, introduced in 2017, has averaged 5.43 per cent.

Here’s a look at the numbers for the past five years:

  • 2023: 5.50 per cent for conventional savings and 5.40 per cent for shariah savings.
  • 2022: 5.35 per cent for conventional savings and 4.75 per cent for shariah savings.
  • 2021: 6.10 per cent for conventional savings and 5.65 per cent for shariah savings.
  • 2020: 5.20 per cent for conventional savings and 4.90 per cent for shariah savings.
  • 2019: 5.45 per cent for conventional savings and 5.00 per cent for shariah savings.

The EPF has yet to announce its official dividend rate for 2024.