SUPP man: EPF’s 6.15pct 2025 dividend still strong despite slight dip, shows fund’s strength amid global challenges

Dato Sim Kiang Chiok

By DayakDaily Team

KUCHING, Mar 1: Although the Employees Provident Fund’s (EPF) 6.15 per cent dividend for 2025 is slightly lower than 2024’s 6.3 per cent, the rate remains strong by historical standards and is well above most fixed deposit and savings rates offered by Malaysian banks, which generally hover between 2.5 per cent and four per cent per annum.

In a statement, Sarawak United Peoples’ Party (SUPP) Stakan Branch chairman, Dato Sim Kiang Chiok, said that from a long-term retirement perspective, a 6.15 per cent return is commendable amid global uncertainties and challenges.

“For over a decade, EPF’s average dividend has been close to six per cent, demonstrating consistency despite global economic volatility, inflationary pressures, and market uncertainties.

“For contributors below the withdrawal age of 55 or 60, the dividend may feel ‘locked in’, as they are unable to access the bulk of their savings immediately. However, the compulsory savings structure is precisely designed to protect long-term retirement adequacy and prevent premature depletion of funds,” he said.

Sim, who is also Sarawak Housing and Real Estate Developers’ Association (Sheda) advisor, stressed that EPF is a disciplined retirement vehicle with professional investment management.

“Compared to ordinary bank savings accounts, EPF continues to outperform significantly. In real terms, after adjusting for inflation, the return still provides meaningful capital growth for members,” he said.

For contributors aged 60 and above, he said, the 2025 dividend is welcome news as, at a stage of life where capital preservation and steady income matter most, a 6.15 per cent return offers reassurance and financial stability.

“It provides retirees with a better yield than most low-risk bank products, without exposing them to the volatility of equity markets.

“In conclusion, the 2025 EPF dividend should be viewed as a solid and responsible outcome. While access restrictions may concern younger members, the long-term compounding effect at above-bank rates reinforces EPF’s role as a reliable pillar of retirement security in Malaysia,” he said. — DayakDaily