Malaysia’s EPF declares 6.15% dividend for 2025

[KUALA LUMPUR] Malaysia’s Employees Provident Fund (EPF), the pension fund for more than 18 million members, declared on Saturday (Feb 28) a 6.15 per cent dividend for both its conventional and syariah savings accounts for 2025.

The payout is slightly lower than the 6.3 per cent in 2024 – the highest since 2017 – but remains above the range of 5 to 6.1 per cent recorded between 2019 and 2023.

The 2025 rate also matches the 6.15 per cent declared in 2018.

The dividend translates to a total payout of RM79.6 billion (S$25.9 billion), higher than 2024’s RM73.2 billion, despite the marginally lower rate. Dividend crediting for both savings accounts will be completed on Sunday.

Stronger ringgit weighs on returns

EPF chief executive officer Ahmad Zulqarnain Onn said at a briefing that the slightly lower dividend for 2025 reflected weaker domestic market performance and the impact of a stronger ringgit.

“The ringgit appreciated 10.2 per cent during the year – one of the best-performing currencies globally – and this reduced the ringgit value of our income from US dollar-denominated international assets,” he said.

EPF’s international portfolio has surpassed the half-trillion ringgit mark and now accounts for 38 per cent of total assets.

In 2025, EPF delivered a strong financial performance, with a 9.5 per cent year-on-year increase in total distributable income to RM82.7 billion.

The growth was underpinned by a 12.8 per cent expansion in investment assets to RM1.41 trillion, fuelled by robust portfolio income and net contributions totalling RM66.5 billion.

Overall, total assets rose 12.7 per cent to RM1.4 trillion, from RM1.25 trillion a year earlier.

From a portfolio perspective, equities remained the primary driver, generating RM50.7 billion with a 7.9 per cent return.

Fixed-income instruments also provided a steady yield of RM26.3 billion, representing a 4.3 per cent return, while real estate and infrastructure contributed RM1.6 billion at a 4.8 per cent return.

Rounding out the performance, money-market instruments added about RM600 million, yielding 1.6 per cent.

The fund intends to maintain its stable asset allocation strategy, currently split between fixed income (45 per cent), public equities (42 per cent), private markets (10 per cent) and money-market instruments (3 per cent).

Moderate growth, upside risks

EPF projects Malaysia’s gross domestic product growth at 4.3 per cent in 2026, within the official forecast range of 4 to 4.8 per cent, but with risks “skewed to the upside” following several quarters of stronger-than-expected performance.

“The outlook for 2026 is moderate, but Malaysia remains in a good place as an investment destination,” Ahmad Zulqarnain said, citing healthcare, digitalisation and energy transition as key long-term themes.

He cautioned, however, that global uncertainty remains elevated.

“Trade policies can shift quickly, geopolitics continues to influence markets, inflation paths remain uneven, and public debt levels are historically high,” he said, adding that artificial intelligence is creating both new winners and new losers at an unprecedented pace.

“In this environment, long-term investors must remain disciplined and diversified,” he added.

Membership growth

EPF’s total membership rose 11.5 per cent to 18.1 million, driven by the onboarding of 1.5 million migrant workers under a new contribution policy.

The number of active members increased 20.6 per cent year on year to 10.6 million.

Total contributions grew 10.4 per cent to RM130.2 billion, while withdrawals declined 6.6 per cent in 2025. Withdrawals were elevated the year before after the introduction of the fully accessible Account 3, a flexible withdrawal account designed for short-term financial needs.

Meanwhile, voluntary contributions rose significantly in 2025, accounting for 16 per cent of total gross contributions, or RM19.2 billion, up from 13 per cent a year earlier.

“That is a number we are pleased about,” Ahmad Zulqarnain said, adding that this signals a meaningful behavioural shift among members, as more Malaysians are actively planning for their future rather than relying solely on mandatory deductions.

EPF yet to decide on Sunway-IJM offer

On the proposed Sunway-IJM transaction, EPF, one of IJM’s largest shareholders, said it has yet to decide on Sunway’s voluntary takeover offer.

“We have not made a decision yet and are awaiting the independent advice circular, which will be issued by Mar 16, before bringing the matter to our respective governance bodies for a decision,” Ahmad Zulqarnain said.

In January, Sunway offered to acquire IJM in a cash-and-share deal valuing the construction and infrastructure group at RM3.15 a share, or RM11 billion. IJM shares closed 2.33 per cent lower at RM2.51 on Friday, giving it a market capitalisation of RM9.16 billion.

Analysts have said the merger would create Malaysia’s largest property and construction conglomerate, though the proposal has drawn political scrutiny over concerns that it could dilute government-linked equity interests and the rights of the indigenous majority.

Despite the noise, Sunway founder Jeffrey Cheah has maintained that the move is purely commercial.

Speaking at Sunway Healthcare’s initial public offering prospectus launch on Friday, he clarified that the deal is not a hostile pursuit.

“There’s no compulsion for shareholders to sell to us,” Cheah told reporters. “It is a ‘willing buyer, willing seller’ transaction. We find it an attractive vehicle, but if shareholders reject the offer, we walk away.”