SHAH ALAM, March 2 — The slight decline in Employees’ Provident Fund (EPF) dividend to 6.15 per cent for assessment year 2025 was due to international investment uncertainties, not domestic economic weaknesses, said economist Prof Emeritus Barjoyai Bardai.
He said Malaysia’s economy is at an encouraging level, but over 45 per cent of EPF investments are focused on the global stage.
“EPF’s excuses are reasonable. The first is the declining forex rate, as more than 45 per cent of EPF’s investments is based on the United States dollar.
“Second is the improving Bursa; we hoped that when share values went up, profits would, too, but share profits were 2.3 per cent,” he told Media Selangor.
On Saturday, EPF announced a dividend rate of 6.15 per cent for 2025, compared with 6.3 per cent the previous year.
EPF chief executive officer Ahmad Zulqarnain Onn reportedly said the stronger ringgit versus the greenback affected foreign investment returns that were valued in US dollars.
He also said the uncertain global investment environment that resulted from unpredictable trade policies, including tariff tensions and current geopolitical developments, also affected the fund’s performance.
Barjoyai meanwhile said EPF wouldn’t face much pressure even if the West Asian crisis prolongs into a wider conflict.
The Universiti Sains dan Teknologi Malaysia (MUST) senior lecturer said EPF invests in many fixed-income instruments like bonds and sukuk, whose base values are more stable.
“If World War III happens, there might be an effect, but EPF invests in a lot of fixed-income instruments, (so) there might be slight effects on its returns,” Barjoyai said.
