Putrajaya is expected to announce the highest dividend rate for the Employees Provident Fund (EPF) since 1996 this weekend.

Multiple sources told Malaysiakini that Putrajaya will announce a dividend rate of between 6.8 percent and seven percent for the year 2017.

If this estimate is correct, this would represent a significant spike of more than one percent in dividend rate, as the rate for 2016 was 5.7 percent.

It is likely the EPF dividend rate for 2017 will be the highest ever since Najib Abdul Razak became prime minister in 2009.

The highest EPF dividend rate of 8.5 percent occurred between 1983 and 1987.

Historical data since 2003 indicated that election years will not see a spike in EPF dividend rate.

Some news reports suggested that the dividend rate announcement will be made by Najib himself. He is also the finance minister.

In previous years, EPF would make its own dividend rate announcement.

The Employees Provident Fund Act 1991 provides the minister the power to give "directions of a general nature" and the power to appoint or remove board members.

Meanwhile, sources also told Malaysiakini that the syariah savings component of EPF will announce a similar, albeit slightly lower, dividend rate.

Since 2017, EPF has provided its 700,000 contributors the option to switch to a syariah savings fund.

The EPF is a major source of funds for the local equity market and has investments abroad as well.