Kuala LUMPUR: The Employees Provident Fund (EPF) has once again demonstrated its resilience by declaring a 6.3% dividend for both conventional and shariah savings in 2024.
This marks the highest payout since 2017, exceeding expectations and reinforcing EPF’s position as one of the world’s most stable retirement funds.
The total payout reached RM73.24bil, with RM63.05bil allocated to conventional savings and RM10.19bil to shariah savings.
This positive performance highlights EPF’s robust investment strategies and ability to adapt to economic challenges, ultimately securing the financial well-being of its 16.2 million members.
Sustainable growth
EPF’s ability to generate sustainable growth is evident in its investment income, which surged 11% to RM74.46bil from RM66.99bil in the previous year.
The fund’s total assets have also grown by 10% to RM1.25 trillion, driven by strategic portfolio diversification and net contributions amounting to RM108.22bil.
A significant 63% of EPF’s investment assets are allocated domestically, generating RM37.02bil in income and reinforcing stability amid global economic uncertainties. This consistent growth reassures contributors that EPF remains a reliable pillar of financial security.
Many members, including corporate leaders and professionals, have expressed their trust in EPF’s investment strategies.
Heng Hiap Industries Sdn Bhd founder and chief executive officer Seah Kian Hoe lauded EPF’s resilience, stating that its ability to navigate economic challenges while maintaining stable returns strengthens his confidence in long-term financial planning. He reaffirmed this trust by voluntarily topping up RM100,000 last year and again this year, further solidifying EPF as his preferred retirement savings vehicle.
Engineering manager M. Logeswaran appreciates EPF’s well-executed investment strategies, reinforcing his belief that his hard-earned money is working for him.
Retiree Prabaker Rao emphasises that a comfortable retirement isn’t left to chance but is built through careful planning and a trusted financial partner.
He highlights that EPF contributors benefit from mandatory 11% contributions and can start saving as early as 14 years old, ensuring a strong financial foundation for the future.
Tunku Abdul Rahman University of Management and Technology principal lecturer Satwant Singh points out how EPF’s long-term stability empowers him to focus on his profession, knowing his future is secure.
Executive Noorfarahana Zulkifle sees EPF’s prudent financial management as a source of peace of mind, allowing her to plan ahead with confidence.
For young professionals like software developer Jason Lee, the fund’s strong performance reassures him that his early investments will yield solid returns, strengthening his financial foundation.
Ensuring long-term financial security
As Malaysia’s population ages, with projections indicating that 17.3% will be aged 60 and above by 2040, the need for sound financial planning has never been more urgent.
EPF’s commitment to sustainable dividends and innovative financial literacy programmes ensures that contributors are better equipped to plan for their retirement.
Initiatives such as flexible withdrawal options and digital enhancements empower members to make informed financial decisions, reinforcing EPF’s role as more than just a retirement fund — it is a comprehensive financial safety net.
Optimising EPF strategies
To further strengthen EPF’s long-term performance, several key strategies can be explored:
> Enhanced financial literacy programmes: strengthening financial education across all age groups will equip contributors with essential knowledge to make informed investment and retirement decisions
> Diversified global investments: increasing exposure to high-growth international markets can mitigate risks and enhance long-term returns, ensuring the sustainability of dividend payouts
> Higher contribution incentives: offering tax benefits, employer-matching schemes, or structured top-up plans can encourage voluntary savings and improve retirement adequacy
> Technology-driven services: leveraging AI-powered analytics and digital tools can provide personalised financial planning insights and enhance accessibility for contributors
> Flexible retirement options: introducing phased withdrawals and staggered pension plans can allow contributors to manage post-retirement income more effectively
> Expanding domestic investments: strengthening investments in key national sectors such as infrastructure, renewable energy and technology — while exploring new opportunities — can drive economic growth and enhance stable returns for EPF members
> Greater customisation of savings plans: providing members with tailored savings strategies based on individual risk appetites, life stages and retirement goals can improve financial outcomes
> Strengthened risk management strategies: adapting investment policies to global economic shifts and inflationary pressures will help sustain stable returns and protect contributors’ long-term savings.
EPF’s 2024 performance reinforces its role as a trusted pillar of financial security for Malaysians.
As economic landscapes evolve, continuous enhancements in financial literacy, investment diversification and digital innovation will be crucial in ensuring sustainable growth.
Moving forward, contributors must take an active role in their financial planning – maximising EPF’s benefits, making informed decisions and considering voluntary top-ups to strengthen their retirement savings.
At the same time, EPF must remain proactive in adapting to global trends, embracing innovation and ensuring stable returns for long-term financial security.
By advancing these initiatives, EPF can further solidify its reputation as one of the world’s leading provident funds, safeguarding the financial well-being of millions for generations to come.
