The Federation of Malaysian Consumers Associations (Fomca) has urged the government to declare a seven percent Employees Provident Fund (EPF) dividend for Malaysians.

Fomca president N Marimuthu said EPF must be sympathetic to the rakyat, given the rising cost of living, imposition of the Goods and Services Tax (GST), falling ringgit and poor performance of businesses.

EPF declared a dividend of 6.75 percent for 2014, compared with 6.35 percent for 2013.

The highest dividend declared was 6.84 percent in 1999.

“So, we are hoping, the government will be generous and approve seven percent as the Finance Ministry is the final approving authority.

“It will be good for EPF to declare seven percent to also boost the confidence of Malaysians, who have suffered economically because of inflation.

“This will give some sense of a more positive feeling in these times of economic uncertainty and increasing costs of living,” Marimuthu said.

He said EPF is enjoying more contributions and is reaping profits from across its portfolio of investments, and should distribute this to contributors.

Investment income grew 9.73 percent to RM11.41 billion for the second quarter ended June 30, 2015, compared to RM10.4 billion in the corresponding period the previous year.

EPF is Malaysia’s largest pension fund, with 15 million contributors.

The fund said investment income totalled RM22.04 billion for the first six months of 2015, a rise of 14.6 percent from RM19.23 billion the year before.

EPF deputy CEO (investments) Mohamad Nasir Ab Latif said last week the fund would declare a “respectable” dividend for 2015.

The dividend announcement would be made after the Chinese New Year holidays, which start today, Mohamad Nasir said.