The Employees Provident Fund (EPF) has declared dividend rates for both Conventional and Shariah savings in 2018.
According to EPF, the dividend rate for Conventional Savings stands at 6.15% which amounts to RM42 billion in payout, while the dividend rate for Shariah savings is 5.9% (total payout of RM4.32 billion).
However, the payout for 2018 savings saw a slight decrease of 1.7% compared to 2017. The Fund attributed this to the volatility in global markets. Particularly the ongoing trade war between America and China, and the four rounds of rate hikes in the US. Additionally, the Shariah dividends were also hurt by an underperforming domestic telecommunications, oil & gas, and construction sectors.
“With a real dividend of 3.93 per cent for Simpanan Konvensional and 3.68% for Simpanan Shariah on a rolling three-year basis respectively, the EPF has exceeded its mandate of delivering a dividend of at least 2.5% on a yearly basis and at least 2.0% real dividend on a rolling three-year basis,” the EPF announced in a statement.
“We are very grateful and pleased that we have been able to consistently meet our two strategic investment targets. Beyond the anticipated nominal dividends, more importantly, is that we consistently deliver above-inflation returns so that we are able to preserve and enhance the value of our members’ savings over the long term and help them achieve a better retirement future,” said chairman Tan Sri Samsudin Osman said.
“Nonetheless, we remained focused on our long-term strategy and our portfolio diversification has provided resiliency and delivered commendable returns to our members,” he added.
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