EPF’S HIGH PAYOUTS REFLECT DIVERSIFIED INVESTMENT STRATEGY, SAYS CIMB CEO
It’s one of the most successful retirement funds globally, says CEO
THE Employees Provident Fund’s (EPF) high dividends for two schemes in 2017 are reflective of its well-diversified investment strategy, says CIMB Group Holdings Bhd chief executive officer.
“Malaysia’s EPF has proven to be one of the most successful retirement funds globally, and the commendable dividend rate is truly reflective of a well-diversified investment strategy.
“CIMB strongly supports EPF’s cause to make retirement a mainstream topic so that more youths can plan for it, whether through EPF or the PRS (private retirement scheme), as soon as they start working,” Tengku Datuk Seri Zafrul Aziz said yesterday.
On Saturday, EPF declared a dividend of 6.90 per cent for its conventional savings for 2017, with payout amounting to RM44.15 billion.
The payout for conventional savings is the highest since 1997. The fund also declared a 6.40 per cent dividend for its Syariah savings, with payout amounting to RM3.98 billion.
In total, the payout for 2017 amounts to RM48.13 billion, an increase of 29.8 per cent from 2016. EPF syariah committee member Dr Zaharuddin Abd Rahman said the slight difference of 0.5 per cent between the two dividends was mainly due to the fact that the conventional savings had been invested in funds, which yielded higher returns.
“Syariah savings could be invested in only one Islamic bank, hence no such returns were garnered from the yield from the conventional investments.
“Syariah-compliant stocks also experienced a downtrend in the telecommunication, oil and gas sectors in the last 18 months compared with the costs recorded when they were purchased resulting in higher impairments.”