The fact the Malaysian Government managed to show SURPLUS or profits in the government's income and spending is an indication that 'reflects investor confidence in the MADANI Government’s growth-friendly policies' not the annual DIVIDENDS declared by the EPF/KWSP.
The Employees Provident Fund’s (EPF) strong performance reflects investor confidence in the MADANI Government’s growth-friendly policies, Prime Minister Datuk Seri Anwar Ibrahim said today.He added that fiscal reforms under the MADANI Economic Framework have further strengthened this confidence, ultimately benefiting the people through universal and sustainable growth. His remarks followed the EPF’s announcement of a 6.30 per cent dividend rate for Simpanan Konvensional, with a total distribution of RM63.05 billion, and 6.30 per cent for Simpanan Shariah, with RM10.19 billion.
Anwar is WRONG to claim this. EPF/KWSP monies are Worker's and EPF members OWN Money(Not Government Money), and EPF is an INVESTOR - where the EPF Board's duty is to invest and generate more income/profits, which are translated to DIVIDENDS that increases EPF member's OLD AGE SAVINGS.
An increased annual dividends means that EPF/KWSP, i.e. their CEO or Board, did well in their investment of worker's 'old age savings' to be able to generate high dividends.
Would the EPF Dividends be HIGHER if not for the Government's Actions is a question we must ask?
One wonders whether the DIVIDENDS would have been much HIGHER if not for EPF's recent involvement in the re-structuring of MAHB - where EPF sold its existing shares at a low value, only to thereafter re-purchase the same shares at a much higher price. That would have diminished our DIVIDENDs for 2024, but it may increase or lower dividends in coming years.
When Anwar Ibrahim, introduced a new law, that allowed EPF members to now withdraw monies from the new Account 3
A total of RM10.78 billion had been withdrawn from the Employees Provident Fund's (EPF) Flexible Account (Account 3) as of the end of September, according to the Finance Ministry (MOF). In a written parliamentary response to Wan Saiful Wan Jan (Perikatan Nasional-Tasek Gelugor), the MOF said that the withdrawals were made by 3.86 million EPF members, representing 29.4% of those below the age of 55.
When members WITHDRAW monies from their EPF accounts, would this not mean that EPF may have had to prematurely dispose of existing investments to get the money needed to pay members who want to withdraw monies NOW - Reasonably, this will impact EPF's investment that were generating 'profits' that would have resulted in higher dividend payouts... If the RM11 Billion(or more) was still in some investments, would it NOT have generated more profits - which will translate into HIGHER Dividends for members?
The 'reason' for allowing EPF members to withdraw monies early from their 'OLD AGE SAVINGS' was so that EPF members can spend this money now to 'BOOST' the Malaysian Economy - rather than the Government pumping in Government Money to help boost economy, the government once again used worker's and/or EPF members' OLD AGE SAVINGS - without any concern about how Malaysians would survive in their OLD AGE until they die.
They do not have Government Pensions, that is available to public officers, former PMs, former MPs, etc - where the government will continue to monthly pay pensions until the recipient dies(and a slightly lower pension to their spouse).
For the private sector workers and the self employed - there is NO government pension, and so they are expected to survive with their OLD AGE SAVINGS in their own EPF/KWSP accounts - and the problem now is that EPF/KWSP members simply do not have enough...
The MOF, however, said that 1.6 million members, or 33% of the total 4.9 million members under 55, had savings of less than RM10,000 as of the end of August 2024. Of these, 1.4 million, or 88%, were inactive members who had not contributed in the past 12 months.
# The fact the EPF members stopped contributing could mean that they are NO longer in employment, or have stopped 'income generation'. To OLD..too sick..no employment opportunities? How OLD - more than 55? 60?
Note, that many after they stop EARNING, Retire, noting that many may not be able to work and others may simply not be able to find any employment, or be involved in any legitimate income generating activities. Remember, when Malaysians stop earning by reason of old age/sickness, inability to work > most continue to be BURDENED with loan re-payment obligations, which includes the houses they live in. If they are unable to pay off the loans, they can also end up losing their HOMES - where will they stay then???
The GOVERNMENT is yet to enact a law, that will guarantee minimum monthly payments for the poor, elderly and/or sick so that they can continue to LIVE. Subsidies are most unreliable - the government can stop it anytime, and worse is the current PM Anwar's government seems to out to remove subsidies for food/fuel/etc that helped Malaysians to survive the growing cost of living with their low wages(Remember wages were kept low, because these 'low wages' were justified as needed to attract FOREIGN investors)
What we need is a LAW that guarantees WELFARE assistance when our 'OLD AGE SAVINGS' run dry - and that has to be a guarantee in LAW.
Proposals of a Universal Pension Scheme had been floated before - where Malaysians after a certain age are required to make monthly contributions, that will be used later as a GUARANTEED pension until they DIE > still not acted upon by the government.
Anwar's government, like past government's, seem to be concerned about the NOW - but people worry about the FUTURE - how will they survive when they no longer have the capacity to EARN.
Anwar continues the trend of IRRESPONSIBLE governance - spending when we cannot afford - thus taking more and more LOANS - so that the people will praise him, but it is IRRESPONSIBLE because it just translate into RM1.5 Trillion LOAN, and since Anwar came into power, the LOANS continue to increase. In 2023, Anwar's government added on an additional RM90 Billion in LOANS (WHY?) We would have praised the PH-led Government if it managed to REDUCE Loans, and thus the amount we spend annually for loan servicing..
One concern of some is whether EPF/KWSP lied when it gave us HIGH DIVIDENDs - to prevent anger of the people noting the MAHB Deal and the 3rd Account withdrawals? Hopefully not.
## Another concern is whether the government has been forcing EPF to provide LOANS to entities with High Risk of not being able to settle their loan obligations to EPF? Has the government been making EPF to stand guarantee for dangerous loans? EPF should be FREE to invest in safe and profitable investments - to ONLY increase profits/dividends of its members.
Maybe, one should even consider whether the EPF CEO ought to made the Finance Minister of Malaysia - he may be able to turn our Malaysia from being in the 'RED" to be profitable and earning more?
The moment EPF Dividends drop, there will LESS self-contribution - and that is a concern. Should we increase the guaranteed minimum DIVIDENDS annually to 5%, from the present 2.5%?
"Between January and August 2024, RM9.39 billion was voluntarily contributed by 872,000 members," it said.
NATIONAL PENSION SCHEME - this is something NEW that we need. We cannot convert the current EPF/KWSP to disallow members from withdrawing ALL their monies on reaching retirement AGE of 55(or 60) - that will be totally unjust and wrong. Hence, there is a NEED for a NEW UNIVERSAL PENSION SCHEME to be implemented now, different from the current EPF scheme.
EPF’s strong dividends reflect investor confidence in government policies, says Anwar
KUALA LUMPUR, March 1 — The Employees Provident Fund’s (EPF) strong performance reflects investor confidence in the MADANI Government’s growth-friendly policies, Prime Minister Datuk Seri Anwar Ibrahim said today.
He added that fiscal reforms under the MADANI Economic Framework have further strengthened this confidence, ultimately benefiting the people through universal and sustainable growth.
His remarks followed the EPF’s announcement of a 6.30 per cent dividend rate for Simpanan Konvensional, with a total distribution of RM63.05 billion, and 6.30 per cent for Simpanan Shariah, with RM10.19 billion.
The total distribution for 2024 stands at RM73.24 billion, the highest since 2017.
“Alhamdulillah, the EPF has announced an exceptional dividend rate, with the highest distribution in history-RM73.24 billion,” Anwar said on social media platform X.
He noted that Simpanan Shariah had also made history by matching Simpanan Konvensional’s rate for the first time.
Anwar, who is also Minister of Finance, attributed the EPF’s strong performance to Malaysia’s robust capital market growth, despite global economic challenges.
“This achievement underscores investor confidence in the MADANI Government’s pro-growth and investor-friendly policies, backed by fiscal reforms under the MADANI Economic Framework, ensuring broad-based and sustainable benefits for the people.”
“With growing confidence in the economy, In shaa Allah, we will press ahead with full commitment to ensuring economic gains are felt by all,” he added. — Bernama, Malay Mail, 1/3/2025
Average monthly withdrawals under EPF's Account 3 amounts to RM400mil in total, says CEO
- Nation
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Saturday, 01 Mar 2025
SHAH ALAM: An average of RM400mil is withdrawn from the Employees' Provident Fund’s (EPF) Flexible Account each month, says Ahmad Zulqarnain Onn.
The EPF chief executive officer said the balance in the Flexible Account stood at slightly under RM8bil, as of the end of last year.
This year, the retirement fund is anticipating some RM11-RM12bil to go into the Flexible Account. Of this, withdrawals are projected to amount to RM5bil.
“In the grand scheme of things, it is something very manageable given the asset size of RM1.25 tril today and increasing all the time,” he said during the presentation of EPF’s Financial Performance 2024 on Saturday (March 1).
"We are not worried about the asset management or liquidity standpoint in dealing with the Flexible Account,” he added.
He said the Flexible Account balances will increase year-on year, barring unforeseen circumstances such as special withdrawal schemes or economic shocks.
Ahmad Zulqarnain said it would take another 30 years before withdrawals exceed contributions.
According to EPF statistics, 7.2 million members had savings of RM10,000 and below while 130,000 have RM1mil and above.
This is out of the EPF’s 16.22million contributors.
Ahmad Zulqarnain also said the country’s ageing population is a demographic "timebomb" that has to be addressed.
“The pension reforms that are required and we are in discussion with many policymakers surrounding this is how do we redesign the retirement system in Malaysia to address some of these issues,” he said.
He said pension funds are like three-legged stools consisting of state pensions, occupational pension which the EPF is and private pension which includes a private retirement scheme and an individual’s own savings.
What Malaysia is missing is a state pension scheme, however, Ahmad Zulqarnain said this would come with its own challenges such as how to fund such a scheme.
On the EPF’s part, he said the retirement fund is looking to spur voluntary contributions which are done through engagements and outreach initiatives.
“Medium term reforms are required. We have to move away from the current model of lump sum withdrawals,” he said.
The Flexible Account or Account 3 was introduced last year to assist EPF members in managing short-term financial needs that could negatively impact their well-being in retirement if left unmet. - Star, 1/3/2025
KUALA LUMPUR (Dec 2): A total of RM10.78 billion had been withdrawn from the Employees Provident Fund's (EPF) Flexible Account (Account 3) as of the end of September, according to the Finance Ministry (MOF).
In a written parliamentary response to Wan Saiful Wan Jan (Perikatan Nasional-Tasek Gelugor), the MOF said that the withdrawals were made by 3.86 million EPF members, representing 29.4% of those below the age of 55.
To recap, the national retirement fund allowed members below 55 to withdraw money from the Flexible Account — a newly introduced account designed to meet members' short-term financial needs — following a restructuring plan that took effect on May 11.
Under this restructuring, members' contributions are now divided into a 75:15:10 ratio across Account 1 (Retirement Account), Account 2 (Sejahtera Account) and the Flexible Account respectively, replacing the previous 70:30 split between Account 1 and Account 2.
On Monday, the MOF said that the 5% increase in contributions to the Retirement Account has resulted in an estimated additional RM1.2 billion in total contributions credited between June and September 2024.
This change has also increased the number of active formal sector members under 55 who have achieved basic savings by 154,000 — from 2.41 million in June 2024 to 2.56 million in September 2024.
The MOF, however, said that 1.6 million members, or 33% of the total 4.9 million members under 55, had savings of less than RM10,000 as of the end of August 2024. Of these, 1.4 million, or 88%, were inactive members who had not contributed in the past 12 months.
The MOF added that several initiatives, including i-Saraan, i-Suri, i-Sayang, and voluntary contribution options, have been implemented by the EPF to help members secure sufficient retirement savings.
"Between January and August 2024, RM9.39 billion was voluntarily contributed by 872,000 members," it said.
Investment portfolio
In response to a separate query from Datuk Seri Hamzah Zainudin (Perikatan Nasional-Larut), the MOF said that the EPF's total investment assets stood at RM1.22 trillion as of the end of September.
Of this, 37.8% or RM462.12 billion was invested in overseas markets, still below the 39% threshold set under the Strategic Asset Allocation (SAA).
The MOF said that the EPF only repatriates surplus foreign currency funds derived from overseas investment income, such as dividends and profits.
"For domestic investments, the EPF utilises net cash flow from members' contributions," it said, adding that over 80% of the annual fund allocation is consistently invested in the local market.
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