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
The 2013 dividend could also be viewed on the EPF Facebook page at Kumpulan Wang Simpanan Pekerja, Twitter at KWSPBuzz and on YouTube. – Bernama