EPF declares a dividend of 4.75%

KUALA LUMPUR: The EPF has declared a dividend of 4.75%
for last year compared to 4.50% in 2003.

The higher rate was a result of increased revenue from
its investments, especially in loans/bonds and equity.

Chairman Tan Sri Abdul Halim Ali said that the Board was
satisfied with the overall performance of the EPF and
that the dividend rate was a reflection of its prudent
and effective investment strategies in the domestic market.

“We will continue to strive to preserve and enhance the
value of members’ savings,” Abdul Halim said in a statement
yesterday.

Gross investment income for the year grew to RM11.76bil
compared with RM10.97bil the previous year, he said.

Net income was RM10.3bil, after deducting for operational
expenses, payment of death and incapacitation benefits and
provisions for unrealised losses as part of prudent
accounting.

The EPF forks out RM2.17bil for every 1% of dividend,
compared with RM1.99bil in 2003.

The approved dividend rate of 4.75% is 1.05% higher than
the average fixed deposit rate for 12 months given by
leading local banks.

Abdul Halim said the fund size grew by about RM20bil
last year. A total of RM237.1bil was invested in 2004,
compared with RM217.1bil the previous year.

The difference indicated a healthy net cash position
for the EPF.

The EPF is Malaysia’s national provident fund and is
aimed at providing financial security once its members
stop working.

It will continue to play a catalytic role in the nation’s
development, consistent with its position as the largest
social organisation in the country.