01/03/2026

NATIONAL 2 theSun on Sunday MAR 1, 2026

EPF dividend of 6.15% draws mixed reactions

‘Credit payout into Account 3’ PETALING JAYA: Arau MP Datuk Seri Dr Shahidan Kassim has renewed his proposal for the 2025 Employees Provident Fund (EPF) dividend to be credited into Account 3, allowing members in need to access the funds more directly. In a post on his Facebook page, the PAS lawmaker said he would formally appeal to Prime Minister Datuk Seri Anwar Ibrahim and the Prime Minister’s Department to reconsider the mechanism of the dividend distribution. Shahidan said it would enable members requiring short-term liquidity, particularly amid rising living costs, to benefit more directly from the dividend payout without dismantling the broader retirement savings. As an additional measure, Shahidan suggested that the government consider implementing a targeted and conditional “Special Aidilfitri Withdrawal” for contributors genuinely affected by cost-of living pressures. He added that he would submit a motion under Standing Order 18(1) on Monday to allow the matter to be formally deliberated in Parliament. – By Ikhwan Zulkaflee PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has expressed concern over Israeli strikes on Iran and the related military action by the United States, urging an immediate halt to hostilities and a return to diplomatic talks. In a statement, Anwar said Israel’s initiation of the strikes was a “vile attempt” to derail ongoing negotiations and to draw other nations into a conflict that could spiral beyond control. “The Israeli strikes on Iran, and the American military action that accompanied them, bring the Middle East to the edge of catastrophe. “An immediate and unconditional cessation of hostilities is imperative,” he said in a statement posted on Facebook yesterday. Anwar urged the US and Iran to seek a diplomatic solution rather than pursue further escalation, while calling on the international community to respond with urgency and without double standards. “My concern at this time is the safety of Malaysians in Iran and elsewhere in the region,” he said, adding that he would be engaging regional partners to determine the next steps. Anwar reiterated that diplomacy, not military escalation, remains the only viable path to preventing a wider and potentially uncontrollable regional crisis. PM criticises Israeli, US strikes on Iran

While some feel rate declared does not reflect nation’s economic growth, others see it as competitive, considering current global headwinds

retirement planning, such stability matters.” Similarly, UMPSA Holdings Sdn Bhd manager Farah Liyana Mohd Ghazali said she does not place too much emphasis on annual dividend fluctuations. “I’m not too fixated on the yearly dividend. EPF is more for long-term security. “Unless there’s a major drop, I will just maintain my contributions.” Cindi Loo, a communications executive in Petaling Jaya, described the rate as realistic given prevailing global headwinds. “I’m okay with the dividend. It reflects a cautious approach as we are facing an uncertain global economy. “EPF is still one of the best avenues for savings and steady financial growth. I won’t increase voluntary contributions but will maintain them.”

standpoint, Idham said marginal adjustments in dividend rates are normal for long-term pension funds whose core mandate prioritises capital preservation and sustainable returns over short-term performance maximisation. “The slight moderation likely reflects prudent positioning amid currency fluctuations, geopolitical risks and uneven global equity performance rather than any deterioration in investment capability.” Idham said with Malaysia’s inflation remaining relatively contained, real returns remain positive.– By Ikhwan Zulkaflee “EPF remains one of the most stable and trusted retirement savings institutions. I will maintain my compulsory contributions and may consider increasing voluntary contributions strategically, particularly through well performing funds under EPF-approved channels.” Loo said she is also contributing to the Skim Simpanan Pendidikan Nasional for her son’s education and maintaining a junior savings account to ensure stable growth. Muhammad Azam Suliman, a content moderator in Kuala Lumpur, said the rate fell short of expectations, particularly against the backdrop of government-declared economic growth. “But I’m still grateful that it didn’t fall below 6%.” He said he is considering withdrawing a portion of his savings to explore other investment options. Mohd Fadzli Farid, a corporate communications manager in Johor, bluntly stated that the dividend does not fully mirror Malaysia’s economic trajectory in 2025. “While the rate is only slightly lower than last year, I feel it does not completely reflect the country’s economic performance.” He pointed to the strengthening of the ringgit against the US dollar, improved investor sentiment and stronger than expected GDP growth, which surpassed earlier projections. “With stronger fundamentals, increased foreign investment inflows and better job prospects, contributors would naturally expect returns that track this positive momentum.” Nonetheless, Fadzli reaffirmed his trust in EPF as his preferred platform for retirement planning.

Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

inflationary pressures and market volatility, 6.15% is still strong.” He added that the rate reflects prudent and stable fund management. Pavithran said the dividend outcome also bolsters his confidence in EPF as a secure long-term savings vehicle. He said he is likely to maintain or increase his voluntary contributions rather than withdraw funds for alternative investments. “EPF offers relatively secure and consistent returns compared with many low-risk savings options. For

PETALING JAYA: The 6.15% dividend declared by the Employees Provident Fund (EPF) for 2025 has drawn mixed responses from contributors, with views ranging from satisfaction over stability to calls for higher returns in line with Malaysia’s economic growth. Pavithran Ravindran, an IT technologist based in Penang, sees the latest payout as competitive despite being slightly lower than last year’s 6.3%. “Given global uncertainties,

Factors resulting in slightly lower returns EPF staff Sara Hamidah Mazlen (left) and Nursyazreen Wahid Marican pointing to the dividend rate of 6.15% for 2025 for both conventional and shariah -compliant savings accounts declared yesterday. – BERNAMAPIC

rate, despite being slightly lower than the previous year’s, should be viewed as a sign of institutional stability rather than underperformance. “Given the heightened external uncertainties, sustaining returns above inflation is in itself a positive sign. It means contributors’ real purchasing power is preserved,” he said.. He added that EPF’s diversified asset allocation – spanning domestic equities, fixed income instruments and a growing share of international investments – has continued to provide resilience. From a portfolio management

investment income. “Exchange rate translation losses have had a tangible impact on overall returns,” Barjoyai told theSun . He said while the local bourse registered gains in 2025, the percentage increase in share prices was less robust than in the preceding year. “The index improved, but the momentum was not as strong as before. That inevitably influenced the fund’s aggregate performance.” Universiti Teknologi Mara Malacca finance lecturer Dr Idham Razak said the dividend

PETALING JAYA: Currency movements and comparatively milder stock market gains are among the key factors that moderated EPF returns for 2025, according to an economist. Malaysia University of Science and Technology economist Prof Dr Barjoyai Bardai explained that over 45% of EPF’s portfolio is invested abroad, largely in US dollar denominated assets. He said the ringgit ’s appreciation against the US dollar reduced the value of those overseas holdings when converted into local currency, effectively trimming net