KUALA LUMPUR: The Employees Provident Fund’s (EPF) stronger investment income in the first half of 2025 (1H25) could translate into a higher dividend payout for the year, with continued gains in global equity markets potentially boosting third-quarter results, economists said.
EPF reported today that total investment income rose 3% to RM38.92 billion in 1H25 from RM37.90 billion a year earlier. In the second quarter (2Q25), income surged 22% to RM20.61 billion from RM16.91 billion in the same period of 2024.
Equities remained the top contributor in 2Q25, generating RM13.77 billion — up 35% from RM10.23 billion in 2Q24.
Putra Business School Professor Dr Ahmed Razman Abdul Latiff noted that while 1H25’s performance suggests room for a higher 2025 dividend, the increase from last year’s rate may be modest.
“This is because a larger pool of new members and voluntary contributors means a bigger allocation is needed just to maintain the current dividend rate, and even more if it is raised,” he told Bernama.
EPF added 286,194 new members in 1H25, bringing total membership to 16.4 million. New employer registrations hit 37,402, raising the total to 619,662 active employers as of June 2025. Voluntary contributions climbed 55% to RM11.68 billion, from RM7.55 billion a year earlier.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said EPF’s 1H25 results benefited from a rebound in global equities in both 1Q and 2Q25.
By contrast, investment income in 1Q25 had slipped 13% to RM18.31 billion from RM20.99 billion in 1Q24.
“So far, global equity markets have posted respectable gains, which should support 3Q performance,” he said.
However, he cautioned that economic uncertainties — stemming from US tariffs and geopolitical tensions — could weigh on sentiment.
“Global interest rates are trending lower, signalling a slowdown in growth momentum, which may eventually affect EPF’s investment returns,” he added.
Even so, Afzanizam said maintaining the current dividend rate amid volatile markets would be commendable, noting EPF’s long-standing experience and disciplined asset allocation as strengths in delivering solid full-year results.
In 2024, EPF declared a 6.30% dividend for both conventional and Shariah savings, distributing RM63.05 billion and RM10.19 billion respectively — the highest rate since 2017.
Source: Bernama
