EPF Declares 5.7 per cent Dividend For 2016, Total Payout RM37.08 Billion

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KUALA LUMPUR: The Employees Provident Fund (EPF) has declared a 5.7 per cent dividend for 2016, with the total payout amounting to RM37.08 billion, a commendable achievement in view of the much tougher market environment.

Samsudin Osman

Its chairman Tan Sri Samsudin Osman said the EPF is pleased it has been able to consistently exceed its two strategic investment targets of at least 2.5 per cent nominal dividend on a yearly basis and at least 2.0 per cent real dividend on a rolling three-year basis.

“As a retirement savings fund, the EPF always emphasises on sustainability of returns over the long term horizon as opposed to short term gains.

“This is a commendable achievement in view of the much tougher market environment. For 2016, the rolling three-year real dividend was 3.83 per cent, 183 basis points above the target,” he added, in a statement here Saturday.

Samsudin said EPF was operating on the back of slower global growth while navigating between changes in the monetary policies in major economies, the slump in crude oil prices, weaker domestic currency, and large-scale outflow of capital from emerging market economies to developed economies and safe haven currencies.

The dividend payout for 2016 is higher than the payout amount in 2014 even though the dividend rate declared then was higher at 6.75 per cent.

Samsudin said the payout amount required for one per cent dividend in 2016 was RM6.51 billion, higher compared with RM5.43 billion in 2014.

“Moving forward we will continue to increase our exposure to alternative investment, particularly in Real Estate and Infrastructure, in line with our objective as a long-term investor to provide consistent returns for our members.

“This asset class also serves as a natural hedge against inflation,” he said.

Beginning 2017, the EPF’s performance results will be broken down by Conventional Savings and Shariah Savings for the quarterly and annual results announcement.

As at Dec 23, 2016, a total of 635,037 members had switched to Shariah Savings with RM59.03 billion of the initial RM100 billion fund allocation taken up.

Members can check their EPF account statement for the crediting of the 2016 dividend starting Feb 19, 2017, through i-Akaun via the myEPF website at www.kwsp.gov.my.

Alternatively, members can also obtain their statement at EPF kiosks or visit any EPF branches nationwide.