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Total distributions hit a new all-time high of RM57.1 billion despite unprecedented Covid-19-related withdrawals hitting growth in its fund size, beating the previous all-time high of RM48.13 billion in 2017.
ON Feb 27, private sector wage earners were happily surprised when the Employees Provident Fund (EPF) declared dividends for 2020 — 5.2% for conventional savings and 4.9% for shariah savings — even though both figures were lower than 2019. Last year, not only did at least five million members save less money and tap into their retirement kitty to alleviate pandemic-related cash-flow strains, but even those who did not have to use those savings were concerned about dividends being hit by EPF’s holding more cash to cater for higher withdrawals. EPF, which needs to pay only 2.5% dividend a...
THERE was a good chance of the Employees Provident Fund reaching RM1 trillion in assets this year, had it not been for the Covid-19 pandemic and economic hardship that nudged the government to allow the unprecedented withdrawal of funds that were previously off limits until members reach age 55. For those who do not need to withdraw money from their EPF accounts, one key question is likely whether a smaller fund size would mean a higher return on investment and higher dividends. Would the reverse be true? The short answer is that there will likely be some short-term impact and the extent of t...
IF the darkest hour is just before the dawn, things are looking pretty downbeat now, with the second round of the Movement Control Order (MCO 2.0) — which started out in five states and three federal territories on Jan 13 — expanded to the whole country except Sarawak until at least Feb 4.
THE Employees Provident Fund (EPF) should have no problem paying a 4% dividend for 2020, going by the income it made in the first nine months of last year, The Edge’s estimates show. That’s easily double the prevailing fixed deposit rates offered by banks. It is likely that the EPF is working hard to pay more than a 4.5% dividend for 2020 to avoid dipping below the 4.5% it paid in 2008 — its lowest on record in the past 12 years. Going by the RM37.83 billion net investment income that the EPF made in the first nine months of 2020 (9M2020), the provident fund should already have enough t...