KUALA LUMPUR: The Employees Provident Fund (EPF) is likely to declare a dividend rate of not more than 6 per cent for 2024.

In an interview with Sin Chew Daily, local economic analyst Datuk Chua Tia Guan said the dividend rate is expected to be between 5.5 and 6 per cent.

Although EPF’s return of total investment increased by 20 per cent in the first nine month of 2024, Chua said the dividend rate is unlikely to exceed 6 per cent.

Figures show that EPF’s investment asset increased from RM1.09 trillion in September 2023 to RM1.22 trillion in September 2024, an increase of 11.7 per cent.

However, the growth in investment return and the rate of investment asset growth must be taken into consideration simultaneously or the actual rate of return may not record a significant increase.

“If the investment performance of EPF in the last quarter of 2024 was at par with the first three quarters, the dividend rate is likely to be higher than 5.5 per cent declared last year.

“Taking the growth of investment asset into consideration, the dividend is unlikely to be more than 6 per cent.

“I feel that the declaration would be ranging from 5.5 to 6 per cent mainly due to increase in investment asset. But we should not be looking at the 20 per cent increase in return of total investment as the investment asset was also up by 11.7 per cent,” he said.

Chua also said the return of Syariah account is likely to be better than conventional account as the former’s investment return was higher.

EPF declared 5.4 per cent of dividend for Syariah account and 5.5 per cent for conventional account for 2023.

“The declaration of dividend for 2024 is definitely higher than 2023,” he said.

In a statement last November, EPF said it recorded a total investment income of RM57.57 billion for the nine months ended 30 September 2024, a 20 per cent increase from RM47.86 billion in the corresponding period in 2023.

For the third quarter (Q3 2024) ended 30 September 2024, the EPF’s investment income was RM19.67 billion, an increase of RM5 billion from RM14.67 billion in the corresponding period in 2023.