With a robust financial performance in the third quarter of 2024, the Employees Provident Fund (EPF) is predicted to offer EPF dividend rates potentially exceeding 6% this year. This forecast is bolstered by stellar market performances and effective asset management.
Historical Trends Versus Current Projections
Traditionally, EPF dividend rates have hovered around 5.95% for the conventional scheme and 5.43% for the Shariah scheme, introduced in 2017. This year, however, thanks to a vigorous investment strategy, the EPF dividend rate might climb higher.
Lee Heng Guie, Executive Director of the Socio-Economic Research Centre, anticipates, “We could see an EPF dividend rate reaching or even exceeding 6.25% for 2024 based on our strong performance over the first nine months.”
The EPF reported an investment income of RM57.57 billion for the first three quarters, up 20% from the previous year.
Navigating Future Economic Challenges
While the outlook for this year is optimistic, projections for 2025 present more complexity. Lee pointed out the possible challenges that could arise from the economic policies under ‘Trumponomics 2.0’, which may bring volatility to the markets. “These policies could introduce uncertainties, impacting our financial and currency markets,” he remarked.
Diverse Investments Fueling EPF Dividend Prospects
The EPF manages RM1.2 trillion in investment assets, with a strategic allocation that supports both domestic and international growth. Dr. Liew Chee Yoong, from UCSI University Malaysia, commented on the fund’s broad investment approach: “Our strong equity performance and reliable income from fixed investments underpin our optimistic EPF dividend outlook for the year.”
Potential Risks Amid Global Shifts
However, Dr. Liew advised caution regarding global economic fluctuations that could influence returns. “Geopolitical tensions and shifts in US trade policies post-Trump re-election might require us to adjust our international investment strategies,” he noted.
Strategic Responses to Global Economic Shifts
Despite potential market volatilities, the EPF’s emphasis on diversification and risk management will continue to guide its investment decisions. “While we may need to make some strategic adjustments, our core focus will remain on diversifying and optimizing returns across various asset classes,” Dr. Liew concluded.
Source: here
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