Who Can Be EPF Millionaires?

EPF or KWSP has just declared 6.3% dividend rate for 2024 for both conventional & shariah accounts, which is the highest since 6.9% in year 2017.

Even though the guaranteed minimum dividend rate is 2.5%, EPF always outperforms by a good margin.

In the last 14 years, 9 years saw its dividend at 6% or above.

It was reported that in FY24, EPF recorded investment income of RM74.46bil, up 11% from RM66.99bil in FY23.

Its total payout in FY24 is RM73.24bil (98.4%), compared to RM57.81bil (RM86.3%) in FY23.

EPF Dividend & Its Calculation

EPF has declared 6.35% dividend for year 2013, representing its biggest ever payout at RM31.20 billion.

Besides, its investment assets size has increased from RM342.01bil in 2008 to RM586.66bil in 2013.

Below are historical dividend by EPF since 1980.

Year	Dividend (%)
80-82	8.0
83-87	8.5
88-94	8.0
1995	7.5
1996	7.7
1997	6.7
1998	6.7
1999	6.84
2000	6.0
2001	5.0
2002	4.25
2003	4.5
2004	4.75
2005	5.0
2006	5.15
2007	5.8
2008	4.5
2009	5.65
2010	5.8
2011	6.0
2012	6.15
2013	6.35

If you have RM100,000 balance in your EPF account after year 2013, how much dividend will you get? 

Is it RM100,000 x 6.35% = RM6350 for year 2013?

No, you actually get less than this, because the calculation of dividend is based on daily rest, not on yearly basis.

FORMULA

Pengiraan dividen untuk bulan Januari

Akaun 1	Akaun 2
[(Baki pembuka Akaun 1 x Bil. hari dalam bulan) + (Caruman bulanan semasa x 1 hari)] x Kadar Dividen / 366 hari setahun	[(Baki pembuka Akaun 2 x Bil. hari dalam bulan) + (Caruman bulanan x 1 hari)] x Kadar Dividen / 366 hari setahun

Pengiraan dividen untuk bulan Februari hingga Disember (berdasarkan bilangan hari setiap bulan)

Akaun 1	Akaun 2
[((Baki pembuka Akaun 1 + Semua caruman bulanan sebelumnya) x Bil. Hari dalam bulan) + (Caruman bulanan semasa x 1 hari)] x Kadar Dividend / 366 hari setahun	[((Baki pembuka Akaun 2 + Semua caruman bulanan sebelumnya) x Bil. Hari dalam bulan) + (Caruman bulanan semasa x 1 hari)] x Kadar Dividend / 366 hari setahun

In our EPF account, employee contributes 11% and employer contributes 12-13% of our basic salary monthly. Thus it is actually a good way of force saving for many people.

For me, it will play a very important role in my early retirement plan for sure.

Malaysia 1-0 Chelsea FC

SP Setia (40%), Sime Darby (40%) and EPF (20%) has just successfully clinched the rights to redevelop a 39-acres Battersea Power Station site in London for 400mil pounds. The piece of land south to the River Thames, is said to be the last piece of prime land in central London available for redevelopment. 

      Battersea prime land

One of the many bidders for the site is Chelsea Football Club, who may wish to have a new ground there. The existing ground Stamford Bridge is just opposite the river. Now Chelsea FC has lost before the start of new season...

     Battersea power plant

After Singapore and Australia, SP Setia has successfully placed its footprint in another developed country. With the experience and capability of SP Setia & Sime Darby, this redevelopment should be a success.

Malaysia's Chelsea FC fans may wish to get a holiday home there!

EPF Pays 6% For 2011 - Not Bad

EPF (KWSP) recently announced its dividend for year 2011, which is 6%, the highest since year 2000, but lower compared to the time when terrible Asian financial crisis hit around 1997-98. For the whole year of 2011, FBM KLCI rose just 0.8%.

If we look at the historical dividend payout by EPF, the dividends were in the region of 7-8.5% in the 80s and 90s. Of course in those days, the bank's saving interest and fixed deposit interest are high as well. Currently, our money value shrinks and the savings interest/dividend rate also shrink. Are we getting poorer and poorer?

EPF historical dividend:

Year	Dividend (%)
80-82	8.00
83-87	8.50
88-94	8.00
1995	7.50
1996	7.70
1997	6.70
1998	6.70
1999	6.84
2000	6.00
2001	5.00
2002	4.25
2003	4.50
2004	4.75
2005	5.00
2006	5.15
2007	5.80
2008	4.50
2009	5.65
2010	5.80
2011	6.00