EPF dividend increase could ease financial strain - Experts

SHAH ALAM - Millions of Employees Provident Fund (EPF) contributors could see a significant boost in their retirement savings if the fund announces a higher dividend payout this year.

Experts believe a higher dividend would provide financial security for workers and strengthen confidence in the country's economic recovery.

Malaysian International Labour Network Council (UNI-MLC) President, Datuk Mohamed Shafie BP Mammal stressed the urgency of this move, citing concerns over inadequate retirement savings among many contributors.

"After more than 10 years, I feel it is time for the EPF to announce a dividend payout of no less than seven per cent for all contributors, whether they are saving under the Syariah Savings scheme or the Conventional Savings scheme.

"A dividend payout exceeding seven per cent aligns with the government's announcement that the EPF has made profitable investments and recorded better-than-usual performance over the past year," he said.

His statement follows Second Finance Minister Datuk Seri Amir Hamzah Azizan’s recent comments, in which he hinted that EPF’s strong performance in the third quarter of 2024 could lead to a better dividend distribution this year compared to the previous one.

Meanwhile, Northern Peninsular Malaysia Electronics Industry Workers Union President, Mohd Razi Rahim said a higher dividend rate would not only help workers financially but also boost confidence in the Madani government's economic recovery efforts.

"If the government announces a higher EPF dividend distribution, it would be a great relief for the people, especially workers who have been contributing to the country's economic development.

"Workers should feel fortunate that the EPF will declare a higher dividend rate this year, which demonstrates the government’s ongoing commitment to helping the people, particularly lower-income workers," he said.

With many Malaysians struggling to save enough for retirement, the anticipated increase in EPF dividends could provide a much-needed lifeline, ensuring better financial security for millions of contributors.