Lower EPF dividends for 2019 fair and satisfactory, says MTUC
22 February 2020 Print page
PETALING JAYA: MTUC president Abdul Halim Mansor has described the lower EPF dividends for 2019 as fair and satisfactory considering the lower returns from its investments.
He said this was due to the challenging economic downturn such as the drop in the performance of the domestic stock market and local equities.
“All these developments impacted EPF’s investments, which resulted in lower dividends for 2019.
“MTUC is confident EPF will take appropriate measures to see if its investment policies can be strengthened to tackle the economic headwinds ahead to ensure better returns from 2020 onwards,” he said in a statement today.
The Employees Provident Fund (EPF) announced a dividend of 5.45% for 2019, with a payout amounting to RM41.68 billion for its “simpanan konvensional”.
With this, the EPF delivered 2.95% above what is mandated under the EPF Act 1991, which requires it to declare at least a 2.5% nominal dividend every year.
However, the rate is lower than the 6.15% given out for 2018.
Halim called on the government to allow EPF more leeway to make more investments abroad.
“Returns from investments abroad have been very positive for EPF, enabling it to announce satisfactory dividends for 2019 despite the daunting economic environment.”
He said MTUC is confident that the fund will make necessary improvements to its internal processes and procedures to approve investments locally and abroad for greater returns and better dividends in 2020.
Source : https://www.freemalaysiatoday.com/category/nation/2020/02/22/lower-epf-dividends-for-2019-fair-and-satisfactory-says-mtuc/