EPF declares 6.9% dividend for conventional accounts

KUALA LUMPUR: The Employees Provident Fund (EPF) has declared a dividend rate of 6.90 per cent for conventional accounts for 2017, with a payout amounting to RM44.15 billion and 6.40 per cent for Simpanan Shariah for 2017, with payout amounting to RM3.98 billion.

In a statement yesterday, EPF said, the payout for 2017 amounted to RM48.13 billion, an increase of 29.8 per cent from 2016.

Chairman Tan Sri Samsudin Osman said the overall performance in 2017 was also a landmark year for the EPF as it was now managing two savings schemes and declaring two dividend rates.

“Simpanan Shariah has shown a strong performance considering that this is its first dividend declaration.

“This reaffirms the strength and health of EPF’s shariah assets and should come as good news to our members who have switched to Simpanan Shariah. As for conventional accounts, the 6.90 per cent was the highest rate ever announced since 1997,” he said.

EPF said the dividend payout for each account was derived from total gross realised income for the year after deducting the net impairment on financial assets, unrealised losses due to foreign exchange rate and derivative prices, investment expenses, operating expenditures, statutory charges as well as dividend on withdrawals.

It said Simpanan Shariah derived its income solely from its portion of shariah assets while for conventional accounts, a total of 38 per cent of the income was generated by its share of shariah assets and 62 per cent from non-shariah assets.

Meanwhile, gross investment income for 2017 was RM53.14 billion, the highest since the EPF’s establishment in 1951.

It said of the amount, a total of RM4.60 billion was attributed to Simpanan Shariah, proportionate to its share of total shariah assets while RM48.54 billion was attributed to conventional accounts.