EPF members, higher dividends are possible for 2024.

EPF members, higher dividends are possible for 2024.

EPF’s investment has been doing well actually. yes, I know you have many of your friends who is selling you some funds telling you that their funds / investment will give a much higher return than our EPF. Well, if you believe them, then invest lah. For me, I think it’s always a balance yeah. EPF is for retirement, the rest would be extra investments we should have.

Coming back to EPF’s performance thus far. In fact 3Q24’s performance was very strong. Here’s the report: Article in thestar.com.my So, what does this mean to all the members? I know, we are unable to touch the money before we retire or well, you want to touch that Account 3… However, for the majority of us, the compounded interest continue to happen every year with EPF’s dividends. Thus, this is a good news indeed. Perhaps read what the analysts are saying. They have access to more numbers and can certainly do a better research too.

Article in thestar.com.my Over the past decade, EPF dividends have averaged 5.95% for the conventional scheme and 5.43% for the syariah scheme, which was introduced in 2017.

Given the strong investment income so far in 2024, could the EPF dividend rate exceed 6% this year?

Socio-Economic Research Centre executive director Lee Heng Guie’s firm is projecting a higher dividend rate of at least 6.25% for 2024.

He said, “Going by the strong investment income in the first nine months (9M24), we expect the full year’s total investment income will exceed 2023’s RM67bil, given the still buoyant performance in both domestic and overseas equity markets.”

For 9M24, EPF posted an investment income of RM57.57bil, a 20% increase from RM47.86bil during the same period in 2023.

However, Lee cautioned that the outlook for 2025 could be more challenging. Read here for the full article: Article in thestar.com.my

My own thoughts based on the strong performance?

Below shows the historical dividend numbers. Yes, EPF gave us amazing returns (versus FD rates) even during the 2020, 2021 years which was really not too amazing for most of us and I hope it will never come back. All the Covid restrictions.

Just for fun, I shall predict that EPF will declare 6.18 percent. 🙂 The number is auspicious I guess for Chinese. 18 = sure rich. 6 is just the percent which I anticipated. So, there you have it, everyone is free to predict what the dividend numbers could be and I do hope that all of us will be happy when EPF announces this many months later.

What do you think? Is 6.18 percent low or high?

FD rates remain low but that’s good for the market too since the home loan mortgage rates are also low versus historical highs. From my understanding, there’s a chance that US’s inflation will move upwards if Trump increases the tariffs for all countries which will definitely make the price of goods move up. So, there’s that chance that instead of reducing the rates, the Fed may increase the rates instead. We will just have to watch what Trump does when he officially becomes the President of the US.

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