The EPF Board shall with the approval of the Minister of Finance declare a rate of dividend after the financial year, 31st December of each year.
For 2016 the gross investment income was RM 46.56 billion compared to RM 44.23 billion in the previous year.
Evidently, there was an increase of 5.25% of investment income in 2016 compared to 2015.
It was also commended by the CEO of EPF that the 2016 investment income is the biggest ever since the establishment of EPF in 1951.
Unfortunately, the contributors received only 5.7% dividend compared to 6.4% in the previous year with a short fall of .7% despite a better investment income compared to previous year.
Rightfully, EPF should payout a higher dividend compared to the previous year. But surprisingly, EPF neither paid a higher dividend nor did it pay the same as previous year. Instead it reduced a substantial portion of .7% and 5.7% is the lowest in 6 years.
This is totally unacceptable and we urge the Minister of Finance to reconsider to at least maintain the previous year’s rate of 6.4%, so that it would benefit the workers who depend on this savings for their retirement.