(Kuala Lumpur, 1st) Democratic Action Party (DAP) Advisor and Bagan Member of Parliament Lim Guan Eng stated that among the 18.1 million EPF contributors, many have expressed disappointment that the Employees Provident Fund (EPF) has only announced a 6.15% dividend rate for 2025!
He said that Malaysians originally expected, given that the economic performance in 2025 is better than in 2024, the dividend rate should logically be higher rather than lower than 2024’s 6.3%.
He noted that in 2025, Malaysia’s GDP growth rate is 5.2%, higher than 5.1% in 2024; inflation has dropped to 1.4%, lower than 1.8% in 2024; and the unemployment rate is 3%, lower than 3.3% in 2024.
“Moreover, the FTSE Bursa Malaysia KLCI ended 2025 at 1680.11 points, higher than 1642.33 points in 2024.”
“The ringgit in 2025 became one of Asia’s best-performing currencies, appreciating by 10.1% against the US dollar, and recording gains of 1.5% to 13.9% against other major and regional currencies; total exports grew by 6.5% in 2025, also higher than 5.8% in 2024.”
In a statement issued on Sunday, he pointed out that despite such strong economic indicators, the dividend rate is still lower than 6.3% in 2024. If the economy slows down in 2026 due to the Middle East war and trade tariff uncertainties, the EPF dividend rate for 2026 may decline even further.
The EPF’s Chief Executive Officer Ahmad Zulqarnain noted that there are two main reasons for the drop in dividend rates. First, the KLCI’s gain last year was only 2.3%, much lower than the approximately 12.9% gain in 2024, affecting the returns from EPF’s stock investments. Second, due to the ringgit’s 10.1% appreciation against the US dollar in 2025, the value of the EPF’s overseas assets denominated in US dollars dropped when converted back to ringgit.
Lim Guan Eng said that the lower-than-expected EPF dividend rate for 2025 has also sparked concerns about Malaysia’s economy exhibiting “K-shaped growth” or a “dual-track economy,” meaning that the benefits of economic growth are concentrated among the top 10% of the population, while the vast majority of Malaysians are finding life even harder.
“Even a stronger ringgit puts some pressure on the economy, especially on exporters who are an important driver of economic growth in 2025. Many exporters worry that a strong ringgit will erode—or even completely squeeze—their profit margins.”
He further noted that policymakers must act quickly to address these concerns to ensure the survival and development of micro, small and medium enterprises (MSMEs) as well as the M40 professional group.
“If even in a period of robust economic growth, a dual-track economy is already impacting the EPF dividend rate, then how severe will the impact be on ordinary Malaysians and SMEs, who make up 90% of the country?”