EPF declares 5.65% dividend for 2009

The Employees Provident Fund (EPF) has declared a dividend rate of 5.65 percent for the financial year ended Dec 31, 2009, up 115 basis points over the 4.50 percent paid out for 2008. The dividend rate was declared on the back of the highest ever net income achieved of RM19.63 billion, increasing 34.82 per cent from RM14.56 billion recorded in the previous year. "2009 was a significant year for the EPF as it rode out the impact of the global financial crisis. While the EPF continues to be challenged by the fragile economic environment, our investment nonetheless delivered a sound performance for the year," chairman Samsudin Osman said in a statement today. During the year under review, 72.53 percent of the total investment were devoted to fixed income instruments in line with EPF's prudent approach, while 27.05 percent was in equities and the remainder in property. As at Dec 31, 2009, EPF's investment portfolio grew 8.55 percent or RM29.25 billion to RM371.26 billion from RM342.01 billion in 2008. On prospects for 2010, Samsudin said: "Baring any unforeseen circumstances, prospects for 2010 are greatly dependent on the economic performance of the country and internationally." He said globally, financial markets continued to be volatile and this might have an impact on the price performance of EPF's investments and future income. "We will continue to focus on our key goals of preserving the capital of our contributors and ensuring a satisfactory real rate of return," he added. - Bernama