Malaysia’s largest pension fund raised its dividend payouts for 2023 after reporting higher income due to the “resilience” of the global economy, which fared better than expected despite challenges last year. 

The Employees Provident Fund (EPF) declared a dividend of 5.5 per cent for conventional savings in 2023, up from 5.35 per cent in 2022, with the total amounting to RM50.33 billion (SS$14.3 billion). The payout for the fund’s syariah accounts – investments made on Islamic principles – increased to 5.4 per cent from 4.75 per cent a year earlier. 

The fund reported total investment income of RM66.99 billion last year, a 29 per cent rise from the previous year, with equities playing a significant role in the improved overall performance, chairman Ahmad Badri Mohd Zahir said in a statement on Sunday (Mar 3). 

“Despite the intensifying geopolitical tensions, elevated interest rates, inflation, regional conflicts, and China’s property sector woes, the global economy showcased resilience and fared better than expected.” Ahmad Badri said. “This allowed the EPF to actively manage its diversified portfolio and capture opportunities to enhance returns.”  

Equities made up 58 per cent of EPF’s income for the year, followed by fixed income instruments at 30 per cent. Foreign assets contributed 53 per cent of income, while domestic assets contributed 47 per cent.

EPF’s total investment assets stood at RM1.14 trillion as at December 2023, the fund said, of which 62 per cent was invested domestically. 

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Its total number of members increased to 16.07 million in December, with 8.52 million active members. Malaysia’s total workforce stood at 17.03 million. 

Ahmad Badri said that EPF is expecting a strong performance this year, although views “are still mixed on global growth outlook”.  BLOOMBERG