PETALING JAYA: Contributors to the Employees Provident Fund (EPF) have every reason to smile – EPF has declared a 6.75% dividend rate for 2014, the highest rate since 1999. With the latest dividend rate, total payout amounts to RM36.66bil, an increase of RM5.46bil compared to 2013’s RM31.2bil. In 1999, the dividend rate was 6.84%.
The EPF also recorded a RM39.08bil gross investment income for the financial year ending Dec 31 2014, an 11.66% increase from RM35bil in 2013.
Its chairman Tan Sri Samsuddin Osman said despite uncertainties in both the domestic and global markets, EPF had outperformed its achievement in 2013.
“Our global investments have contributed 33% towards our total income for 2014 despite being only 23% of our total assets.
“No doubt, the end of 2014 has been challenging for EPF due to the slump in global oil prices. The weakening of the ringgit in the fourth quarter added further uncertainty.
“However, our prudent diversification approach has given us the edge and resilience to weather the economic conditions, particularly in the global markets,” he said in a statement here yesterday.
In order to correspond with EPF’s objectives of preserving and adding value to members’ savings, Samsuddin said it aimed to provide at least a 2% returns of above inflation over a three-year rolling period.
The dividend declared for 2014 is equivalent to a rolling three-year real returns of 4.11% over inflation.
EPF, said Samsuddin, foresaw challenges ahead due to rising levels of economic uncertainty in both domestic and global markets on the back of low oil prices, potential reduction in global Gross Domestic Product (GDP) growth and further compression in fixed income yields.
Recent quantitative easing in global markets and a more deflationary outlook, he added, would also lower expected nominal yields for long-term investors like EPF.
However, Samsuddin said it expected inflation to “remain benign”, adding that EPF would continue to uphold its policy of judicious risk management and investment allocations.
The EPF account statement for the crediting of the dividend is available online via i-Akaun at myEPF website (www.kwsp.gov.my).
Alternatively, members can obtain their statement via EPF kiosks or visit any branch starting today.