KUALA LUMPUR (Feb 16, 2014): The Employees Provident Fund (EPF) today announced a 6.35% dividend for 2013, higher than the 6.15% declared for 2012.
EPF chairman Tan Sri Samsudin Osman said in a statement that this would involve the highest sum in dividend payout to subscribers, totalling RM31.20 billion. It is 13.66% higher than the total dividend payout in 2012, which was RM27.45 billion, he added.
Samsudin said the dividend rate was declared on the back of a record gross investment income of RM35 billion, a 12.81% rise from the RM31.02 billion gross investment income recorded in 2012.
“The 2013 dividend payout was derived after deducting the net impairment allowance on financial assets, investment expenses, operating expenditures, statutory charges as well as dividend on withdrawals,” he said.
Samsudin said equities emerged as the largest contributor to the EPF’s gross investment income in 2013, generating RM19.52 billion of income, a significant increase of 40.39% compared with RM13.90 billion recorded in 2012.
“EPF’s equities portfolio generated double-digit realised returns, exceeding the performance of other similar funds,” he said.
Samsudin said the strong performance in its equities portfolio was helped by the local and global indices reaching new highs.
“This was attributable to investors’ confidence in the stability and fundamental economic strength of our domestic market with the conclusion of the 13th General Election,” he said.
Samsudin said that as the EPF membership rose to more than 13 million, a total of RM4.91 billion was required to pay every one per cent dividend rate for 2013.
“This was 10.06% higher compared with RM4.46 billion paid for every 1% dividend rate for 2012. The amount needed to pay a 1% dividend would continue to grow between 8% and 9% annually,” he said.
He also said: “Given the global economic slowdown and financial uncertainties, we remain steadfast and our achievements are testament to the EPF management’s continuous efforts and initiatives to maintain long-term financial stability.”
“Thanks to our robust yet prudent investment strategies, our performance has been consistently stable, especially in the past five years.
“Over the years, we have been diversifying our portfolio, thereby spreading out the scope of our assets to manage market risks and generate consistent returns.”
Samsudin said the EPF account statement for the crediting of the 2013 dividend is now available online via i-Akaun at the myEPF website (www.kwsp.gov.my). Alternatively, members could obtain their EPF account statement from the EPF kiosks or at any EPF branch from tomorrow.
The 2013 dividend could also be viewed on the EPF Facebook page at Kumpulan Wang Simpanan Pekerja, Twitter at KWSPBuzz and on YouTube. – Bernama
KUALA LUMPUR, Jan 30 — Lembaga Tabung Haji today announced an annual bonus of six per cent and an additional haj bonus of two per cent for its financial year ended Dec 31, 2013.
The six per cent annual bonus is competitive and is three percentage points above the rate for fixed deposit accounts at Islamic and conventional banks.
Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom said Tabung Haji had recorded an encouraging financial performance and the haj bonus payment showed its commitment in caring for the depositors’ welfare.
“Tabung Haji’s bonus rate is competitive considering that its investment profile is limited to investments based on Shariah while savings in Tabung Haji is voluntary and without limit,” he said at a press conference to announce Tabung Haji’s financial performance today.
For 2013, Tabung Haji achieved an income of RM3.7 billion, an increase of 34 per cent from RM2.8 billion a year earlier.
Net income after zakat amounted to RM2.6 billion in 2013 compared with RM2.1 billion in 2012.
Tabung Haji has 8.3 million depositors, out of whom 7.7 million have not performed the haj.
The majority of the depositors’ accounts (7.2 million) has an average minimum balance of less than the haj payment of RM9,980.
PETALING JAYA: The Cabinet has decided not to go ahead with the proposal to link the National Higher Education Fund (PTPTN) with Bank Negara’s credit reference database.
Youth and Sports Minister Khairy Jamaluddin on Wednesday in his tweet, thanked Prime Minister Datuk Seri Najib Tun Razak and the education ministers for the decision.
“Just finished with the Cabinet meeting. PTPTN will not go ahead with its proposal to list the defaulters under CCRIS”.
Last Monday, Education Minister II Datuk Seri Idris Jusoh had announced that PTPTN would be collaborating with Bank Negera to list PTPTN loan defaulters under the Central Credit Reference Information System (CCRIS).
He said the system would be put in place for those who are adamant about not repaying their loans.
The announcement has drawn flak from many quarters across the political divide, saying that the move would create more difficulties to the students.
KUALA LUMPUR: Starting this month, the National Higher Education Fund Corporation (PTPTN) is collaborating with Bank Negara to list PTPTN loan holders under the Central Credit Reference Information System (CCRIS).
According to Education Minister II Datuk Seri Idris Jusoh, those who have not settled their loan repayments should discuss this matter with PTPTN or they might face difficulties when applying for other loans.
However, he said this was not something scholars should worry about.
“This system was put in place for those who are adamant about not repaying their loans,” said Idris during a press conference Monday after the PTPTN Hari Raya celebration here.
He added that those unable to repay their loan could discuss their payment plan with PTPTN to come up with a new repayment schedule.
This would enable their names to be excluded from the CCRIS database, he added.
Those who managed to repay their loans in one lump sum before Sept 30 this year will get a 20% discount.
KUALA LUMPUR: BANK Negara Malaysia has introduced a slew of new financing measures to rein in escalating household debt in the country.
The measures include limiting personal financing loans to a maximum of 10 years from 25 years and property loans to a maximum of 35 years from 45 years.
The central bank has also prohibited the offering of pre-approved personal financing products, such as unsolicited pre-approved credit cards.
The measures, which take effect immediately, will impact 33 financial institutions and close to 500 cooperatives in the country which provide financing means to cover the purchase of residential and non-residential properties, transport vehicles, credit cards, securities and personal use.
Earlier this week, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said household debt had risen to 83 per cent of the gross domestic product, placing Malaysia as one of the highest in the world.
Explaining the move, central bank governor Tan Sri Dr Zeti Akhtar Aziz said household debts, which stood at 70 per cent of the GDP in 2009, had increased at a strong pace since, averaging at an annual rate of 12 per cent.
“It has not reached an alarming stage yet but with the current external risks to growth, this has raised the concern of affordability and sustainability of the household sector,” she said, adding the regulation had also just come into force.
Apart from properties which form the bulk of household debts with 44.5 per cent of the total, personal loans contributed 16.8 per cent of household debt.
In a briefing to news editors yesterday, she described the reduction in tenures for personal financing and property loans as reasonable.
“Even if household debt has been supported by positive income and employment conditions, there has been a trend in the offering of financial products that are not in the long-term interests of consumers.
“While this may reduce monthly repayments, in the long run, this increases the overall debt burden of households.”
As such, key credit providers are required to ensure that the debt service ratios of vulnerable groups should not exceed 60 per cent, so as to ensure households have sufficient financial buffers to protect them against rising costs and unexpected adverse events.
“However those households which have the financial capacity to take on borrowings will continue to enjoy access to financing.”
The banking industry, she said, welcomed the measures and was keen to reduce the level of indebtedness which can affect the financial sector as well as the growth of the economy.
Banks have been told not to cut back on credit lines with the introduction of the new measures.
Commenting on the previous measures by the central bank, she noted that there had been improvements in the credit card category as well as for automobile financing.