Kuala Lumpur (Feb 5) - The Employees Provident Fund (EPF) is projected to declare a 2025 dividend of about 5.8 to 6.3 per cent for Conventional Savings, while Shariah Savings is expected to range between 5.5 and 6.0 per cent. The outlook is anchored on the fund’s strong investment income performance over the first nine months of the year, balanced against the need to maintain long-term reserves.
As at the first nine months of 2025, EPF recorded investment income of RM63.99 billion, representing an 11 per cent increase compared with RM57.57 billion during the same period last year. This performance signals a healthy earnings trajectory, although the final dividend outcome will still depend on fourth-quarter results and how much income can be realised rather than remaining on paper.
Despite the encouraging numbers, expectations of an exceptionally high payout—such as 6.5 to 7.0 per cent—are viewed as unlikely. EPF operates under a governance framework that prioritises sustainability over maximising returns in any single year. Not all market gains can be distributed, especially unrealised “mark-to-market” gains arising from foreign exchange movements or asset revaluations. These limitations, together with reserve requirements, effectively cap dividend levels even during strong market years.
Differences between Conventional and Shariah Savings are also expected to persist. Shariah portfolios face stricter investment parameters, excluding conventional bonds and certain risk-hedging instruments, while being more exposed to equity market cycles. In periods of heightened global uncertainty such as 2025, this typically results in Shariah returns trailing Conventional Savings by around 0.2 to 0.3 percentage points.
Looking ahead, EPF has signalled a more cautious stance going into the final quarter of the year. With global equity valuations already elevated, profit-taking has reportedly been accelerated in anticipation of a less favourable year-end market environment compared with the first nine months.
While the stable dividend declared by Amanah Saham Bumiputera (ASB) has lifted overall investor sentiment, it is not a direct benchmark for EPF. EPF’s portfolio is far more exposed to global markets, foreign exchange movements, geopolitical developments and international interest rate cycles, making its dividend dynamics fundamentally different.
For Sabahans, the projected dividend range offers reassurance at a time when cost-of-living pressures remain a concern, particularly in East Malaysia where prices and logistics costs are generally higher. A stable EPF return helps strengthen household financial resilience, supports long-term retirement planning, and provides added confidence for contributors who rely on EPF savings as a key pillar of future security.
EPF Dividend Rates (2020–2024)
- 2020: Conventional 5.20%, Shariah 4.90%
- 2021: Conventional 6.10%, Shariah 5.65%
- 2022: Conventional 5.35%, Shariah 4.75%
- 2023: Conventional 5.50%, Shariah 5.40%
- 2024: Conventional 6.30%, Shariah 6.30%
Overall, the anticipated 2025 dividend is seen as competitive and defensible, reflecting prudent fund management while continuing to deliver meaningful returns for contributors across Malaysia, including Sabah.