KUCHING: The Employees’ Provident Fund (EPF) dividends for 2023 will be ‘quite moderate’, given the current global economic situation, a senior lecturer said.
Dr Dzul Hadzwan Husaini of Universiti Malaysia Sarawak’s Faculty of Economics and Business said external factors such as geopolitical tensions and the lingering impact of the Covid-19 pandemic on the global economy are likely to adversely affect the performance of EPF’s global investments.
He cited the ongoing Russia-Ukraine conflict destabilising the supply chain market, and China’s faltering economic growth and economic recessions in both Japan and the United Kingdom, contribute to sluggish global economic growth.
“As a major hub for economic production, any slowdown in China has adverse effects on global economic performance.
“Additionally, both Japan and the United Kingdom are experiencing economic recessions, impacting global demand for major commodities.
“The reduced demand from these countries further exacerbates the negative impact on the global business cycle.
“These external factors undoubtedly have a detrimental effect on the performance of EPF investments made internationally,” he told New Sarawak Tribune.
He noted a similar economic trajectory, citing the unsatisfactory dividend of Amanah Saham Bumiputera (ASB) for 2023.
He opined that this could serve as a benchmark indicating that the domestic economy is still not experiencing robust growth.
“We continue to grapple with high living costs, as the increase in income among the population is insufficient to offset these expenses.
“This, in turn, may contribute to an unsatisfactory EPF dividend rate for the year 2023,” he said.
As such, he posits that the EPF dividend for the year 2023 is expected to be moderate or even less than satisfactory, reflecting the slow development in both domestic and global markets.
In 2022, the EPF announced a dividend of 5.35 per cent for conventional savings, resulting in a total pay-out of RM45.44 billion.
Additionally, a dividend of 4.75 per cent was declared for syariah savings, with a pay-out totalling RM5.7 billion.
The EPF dividends for 2023 are expected to be announced on March 3, during its annual financial performance briefing.
