EPF: Net inflow of RM16 billion last year

> Pension fund ended year with RM53.14 billion in total gross investment income, highest since 1951

PETALING JAYA: The Employees Provident Fund (EPF) reported a rise of 6.38% in annual contributions to RM65.52 billion against total annual withdrawn of RM49.4 billion, resulting in net inflows of RM16.12 billion in 2017.

In a statement on Friday, the statutory body said that the 2017 annual report was tabled in Parliament on April 3.

EPF ended the year with RM53.14 billion in total gross investment income, the highest since 1951, with a gross return on investment of 7.3%, which was 18 basis points higher than in 2016.

Total investment assets increased by 8.26% to RM791.48 billion from RM731.11 billion in 2016. This was against total members’ contribution of RM768.51 billion as at Dec 31, 2017.

EPF had earlier declared a dividend rate of 6.9% for Simpanan Konvensional, with a payout of RM44.15 billion; and 6.4% for Simpanan Shariah, with a payout of RM3.98 billion.

In total, the payout for 2017 amounted to RM48.13 billion, which represented a 29.8% increase from 2016.

EPF said total number of withdrawal applications increased 3.84% to 2.45 million, out of which 2.32 million were approved applications, which amounted to RM49.4 billion through various withdrawal schemes.

“Overall, it was a good year with a number of ‘firsts’ for the EPF. Most notably, it was the year we declared the first investment results and dividend rate for Simpanan Shariah,” its CEO Datuk Shahril Ridza Ridzuan said.

“We have been making great strides in meeting our members’ needs as we have introduced more enhancements to our online channels. We are also very close to achieving a 100% take-up rate of our e-Caruman portal by employers, which has proven to be an essential online facility to submit employee contribution details and make payments on time,” he said.

In terms of financial outlook, Shahril said it anticipates continued market volatility and political uncertainty for the year ahead in both the domestic and global fronts.

“Nonetheless, we look upon this as an opportunity for us to maintain our financial performance and enhance investment returns over the long run,” he added.