EPF’s 6.15 pct dividend reflects prudence amid global volatility, says Sheda adviser

KUCHING (March 1): The Employees Provident Fund’s (EPF) recently announced 6.15 per cent dividend has been described as a solid and responsible return, given the challenging global economic environment over the past year.

Sarawak Housing and Real Estate Developers’ Association (Sheda) adviser Dato Sim Kiang Chiok, in an interview with The Borneo Post, said the dividend remains commendable despite being marginally lower than last year’s 6.30 per cent.

“My reaction to the latest dividend announcement is generally positive. A 6.15 per cent dividend is a solid return, especially considering global economic uncertainties, geopolitical tensions, and market volatility over the past year,” he said.

Sim, who is also the Sarawak United People’s Party (SUPP) Stakan branch chairman, acknowledged that contributors may have hoped for a higher rate but stressed that sustainability and consistency should take precedence over short-term gains.

While the dividend is slightly lower than the previous year’s 6.30 per cent, he noted that it remains above many market expectations and significantly higher than average bank savings or fixed deposit rates in Malaysia.

“Of course, contributors always hope for a higher rate, but sustainability and consistency are more important than a one-off high dividend.

“In that respect, the EPF has delivered responsibly,” he said.

Sim said the dividend appears aligned with prevailing global conditions, which continue to be characterised by moderate growth, fluctuating interest rates, and uncertain investment markets.

He added that achieving the 6.15 per cent return under such circumstances demonstrates prudent financial management, disciplined risk controls and a balanced investment strategy.

“It shows that the fund is balancing growth with capital preservation, which is critical for long-term retirement savings,” he said, describing the rate as realistic rather than overly aggressive.

On the restructuring of EPF accounts, Sim said dividends should continue to be distributed across all accounts rather than channelled entirely into Account 3.

“While easier access through Account 3 may be appealing in the short term, EPF’s primary role is retirement security, not short-term liquidity,” he said.
He cautioned that allocating all dividends into Account 3 could encourage withdrawals that may compromise long-term savings adequacy.

“A balanced distribution protects members’ future financial stability while still allowing limited flexibility when necessary,” he said, reiterating that long-term protection and financial discipline must remain the guiding priinciples.