KUALA LUMPUR: The Employees Provident Fund (EPF) is on track to deliver higher dividend to its members, following its double-digit growth in investment income, according to an economist.
The EPF recorded a total investment income of RM63.99 billion for the nine months ended Sept 30, 2025 (9M2025), an 11 per cent increase from the RM57.57 billion posted in 9M2024.
For the third quarter of 2025 (3Q 2025), total investment income rose to RM25.07 billion, a 27 per cent jump from RM19.67 billion in 3Q 2024.
Equities continued to be the largest contributor, delivering RM16.95 billion or 68 per cent of the fund’s total investment income for the quarter.
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Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the investment income growth reflects EPF’s investment strategy, especially its diversification into various asset classes and geographical exposure.
"The improvement in investment has allowed the fund to ride the market uncertainties effectively.
"This requires skill and discipline as the market shock in early April 2025 due to the United States (US) Liberation Day tariffs could easily sway the risk appetite towards a defensive strategy,” he told Bernama.
He said EPF’s timing and quality of investment decision play a crucial role in determining the value of investment.
"It also indicates that EPF is well advised by their own investment research and fund managers who are highly skilled and experienced,” he said.
However, Mohd Afzanizam noted that the downside risks in investments remain clearly visible for EPF, mainly the valuation in artificial intelligence-related stocks, as price corrections could easily impede the investment performance globally.
"Additionally, the timing of the interest rate cut by the US Federal Reserve in December 2025 remained a downside risk for EPF.
"So the fourth quarter performance will be a key factor that will determine how much dividend rate can be announced next year,” he added.
On March 1, 2025, EPF declared a dividend rate of 6.30 per cent for Conventional Savings with a total payout of RM63.05 billion, and 6.30 per cent for Shariah Savings, a payout amounting to RM10.19 billion.
This brings the total dividend payout for 2024 to RM73.24 billion, benefiting more than 16 million members. - Bernama
