The Malaysian Trade Union Congress today expressed regret over the low Employee's Provident Fund (EPF) dividend rate declared for last year.

EPF executive chairman Sallehuddin Mohamed announced this morning that the dividend rate for 1999 would be 6.84 percent, an increase of only 0.14 percent from the last two years' lowest of 6.7 percent.

He said that the net EPF income in 1999 was RM10.24 billion, which was an improvement of 13.08 percent over the previous year's income of RM9.06 billion.

"For 1999, a sum of RM1.49 billion was needed to pay one percent dividend declared in comparison with RM1.34 billion in 1998," he said.

MTUC vice president Mohd Shafie Mamal however told malaysiakini today that the congress would meet Finance Minister Tun Daim Zainuddin as soon as possible to raise their concerns.

"We feel that EPF can do better. The figure of 6.84 percent is too low. We were looking forward to at least 6.9 percent," he said.

Mohd Shafie added that although most people would argue that the rate was comparable to dividend rates of banks, the EPF contribution is a long term investment and a crucial old-age fund.

"Anything below 6.9 percent will only lessen the contributors' confidence in the fund," he said.

Mohd Shafie's sentiment was echoed by DAP chairman Lim Kit Siang who today said that the 0.14 percent increase was "most disappointing".

"There is total lack of transparency in view of the various reports about the massive investments of the EPF in dubious contracts," he said in an immediate response to malaysiakini.

He added that contributors should be given greater accountability and explanation on the handling of the funds and the low dividend rate.

The executive secretary of the National Union of Transport Equipment and Allied Industries Workers, Syed Shahir Syed Mohamed also voiced disappointment over the dividend rate announced.

"It is just not right. They keep saying that the economy has improved, the country's GDP has increased, then why is the rate so low?" he asked.

He added that the rates offered by other financial institutions such as Tabung Haji, Bank Rakyat and Amanah Saham Bumiputera were even higher than the EPF rate.

Meanwhile, the umbrella union of civil servants in the country, Cuepacs, said that it was satisfied with the 1999 dividend rate.

"Although there has been effort to declare a higher dividend rate, certain positive factors have to be considered including a 13.08 percent increase in the net income, RM136.84 million payment of death and incapacitation benefits, as well as an increase of contributors from 9.2 million members in 1998 to 9.5 million in 1999," Cuepacs president Siva Subramaniam said in a press statement today.

It was earlier announced that the EPF would declare a dividend of 6.7 percent for 1999, similar to the dividends it offered over the past two years. The 6.7 per cent EPF dividend is the lowest offered in more than two decades.