KUALA LUMPUR — The Employees Provident Fund (EPF) is expected to announce a dividend rate of 6.0% to 6.2% for 2024, supported by strong global and domestic economic conditions, according to an analyst.

The EPF will announce its 2024 dividends this Saturday (March 1). Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors, attributed the strong performance to factors such as a resilient global economy, a robust equity market, favourable fixed-income yields, and recovery in private equity activity.

He highlighted that Malaysia’s 5.1% economic growth in 2024 also contributed to investment returns, alongside the positive performance of the FTSE Bursa Malaysia KLCI and stable interest rates and low inflation.

Global economic conditions, including stable growth, trade expansion, and attractive US bond yields, also supported EPF’s performance. The US Federal Reserve's policies helped generate strong returns from US dollar-denominated fixed-income investments.

Looking ahead, Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia, stressed EPF’s strong governance and strategic asset allocation practices to sustain performance. However, he warned that 2025 might pose challenges due to global political and economic uncertainties, including tensions in Europe and the Middle East.

Despite uncertainties, he noted that EPF’s investments would likely be more cautious, with a focus on less risky assets. Past dividend rates, he emphasized, are not an indicator of future returns.