Narrowing gap in EPF dividends for conventional, syariah savings an achievement, says Amir Hamzah

Photo: Bernama

TAPAH: The gap between the Employees Provident Fund (EPF) dividend rate for conventional and syariah savings declared this year has reduced compared to previous year, says Datuk Seri Amir Hamzah Azizan.

The Finance Minister II said the difference in 2023 was 0.6%, but it was only 0.1% this year, saying this was a good achievement.

"If we look at the returns, the 5.5% dividend rate is among the highest declared.

"For the syariah dividend rate, which is 5.4%, the returns are also very good," he told a press conference after witnessing the process of the handing out of Sumbangan Tunai Rahmah (STR) to the Orang Asli community at the Kuala Woh reserve forest eco-park near here on Sunday (March 3).

EPF earlier on Sunday declared a dividend rate of 5.5% for conventional savings for 2023, with a total payout of RM50.3bil and a 5.4% dividend rate for syariah savings, with a total payout of RM7.5bil.

For 2022, EPF declared a dividend rate of 5.35% for conventional savings with a total payout of RM45.44bil and 4.75% for syariah savings, with a payout amounting to RM5.7bil.

Amir Hamzah said he hoped contributors would be happy with the dividends.

He said Malaysia was among the countries with an aging population, thus EPF and other forms of savings for retirement are very important.

"There is a need to have enough savings when one retires. So for EPF, we see the longer one keeps their money, there is a bigger compounding (interest) effect," he said.