EPF dividend rate above par performance, says Maybank

Maybank Group said the dividend rate declared yesterday by the EPF is an above par performance. — Picture by Firdaus Latif
Maybank Group said the dividend rate declared yesterday by the EPF is an above par performance. — Picture by Firdaus Latif

KUALA LUMPUR, Feb 11 — The dividend rate declared yesterday by the Employees Provident Fund (EPF) is an above par performance, especially considering that global interest rates are still below what is considered to be a “normal” interest rate environment, Maybank Group said.

Its Group President and Chief Executive Officer, Datuk Abdul Farid Alias described it as a very encouraging performance by the EPF to give a dividend rate higher than their target of two per cent above the inflation rate of 3.7 per cent last year.

“While we note the difference in dividend rate between the conventional and shariah accounts, we believe that with time and the availability of more Shariah-compliant investment instruments, the EPF will be able to achieve some level of parity in the returns for these accounts,” he said in a statement today.

The EPF declared a dividend rate of 6.90 per cent for conventional accounts for 2017, with a payout amounting to RM44.15 billion and 6.40 per cent for Simpanan Shariah for 2017, with payout amounting to RM3.98 billion. — Bernama

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