Economists say EPF’s long-term investment strategy will sustain competitive dividends despite forex and market challenges.

KUALA LUMPUR: The Employees Provident Fund’s dividend rate is projected to stay competitive, anchored by its long-term Strategic Asset Allocation.

Putra Business School’s Prof Dr Ahmed Razman said the fund’s focus on stable returns and reduced forex exposure underpins this outlook.

He noted a strategic shift towards increased private equity and international investments for better risk diversification.

“This is one of the risk diversification strategies so that the ringgit’s movements do not have a significant impact on dividend rates from year to year,” he said.

EPF CEO Ahmad Zulqarnain Onn cited ringgit strength and moderate KLCI performance as factors in the 2025 dividend dip to 6.15%.

He explained that a stronger ringgit reduces the ringgit value of US dollar-denominated overseas investment returns.

The fund’s total distributable income for 2025 grew 9.5% to RM82.7 billion.

Total investment assets also rose 12.8% to reach RM1.41 trillion.

Economist Prof Dr Barjoyai Bardai highlighted EPF’s balanced expansion into fixed-income and equity assets.

He stated this approach supports the generation of more sustainable long-term income.

Equities contributed RM50.7 billion, forming 64% of the EPF’s total 2025 investment income.

The return on investment for equities moderated to 7.9% amid global and domestic market volatility.

Private equity investments, however, delivered a stronger ROI of 10.5% for the year.

 The Sun Malaysia