EPF dividend: Activist schools Wan Fayhsal on retirement fund's law

Summary

• An activist chides Bersatu MP Wan Fayhsal’s criticism of the EPF’s high dividend payout as being ill-informed.

• Liyana Marzuki points out that based on the EPF Act, dividends must reflect actual investment performance.

Bersatu MP Wan Ahmad Fayhsal Wan Ahmad Kamal should do some research before criticising the Employees Provident Fund’s (EPF) high dividend payout for 2024, said activist Liyana Marzuki.

This comes after the Machang lawmaker alleged the move could be aimed at currying favour among the public.

Taking to Facebook today, Liyana urged Wan Fayhsal to read Section 27 of the EPF Act 1991, which states that the dividend payout to contributors must reflect the organisation's actual investment performance.

“It means after deducting costs, the balance return of investments must be turned into dividends to its contributors.

“EPF is a statutory body, not a private entity. They cannot keep parts of the investments according to their whims and fancies.

“Why can’t the YB (Wan Fayhsal) do some research before making any comments? You’re a lawmaker,” she said.

‘Extraordinarily high’

On March 1, EPF announced a dividend rate of 6.3 percent for both conventional and syariah savings, which is the highest in seven years.

This involved a total payout of RM73.24 billion, benefiting over 16 million members.

Yesterday, Wan Fayhsal questioned the dividend rate, pointing out that it consumed almost all of EPF’s RM74.46 billion investment income for 2024.

“I also want to ask whether (the high dividend rate) is because there is growing criticism of EPF’s management by the opposition, causing EPF to attempt to pacify contributors,” he said.

Playing politics

Sungai Petani MP Taufiq Johari said he was amused by Wan Fayhsal’s attempt to play politics over the large dividend payout.

“In fact, it is the highest rate announced since 2017 and should be celebrated,” he said in a statement today.

Taufiq pointed out that the same principle was applied during Perikatan Nasional’s era in 2022 under the premiership of Muhyiddin Yassin.

“In 2022, the investment income was RM55 billion and RM51 billion was paid out in dividends.

“The only difference was that EPF declared a dividend rate of 5.35 percent for conventional savings and 4.75 percent for syariah savings (back then),” he said.

Taufiq added: “He (Wan Fayhsal) and his party mates don’t want to admit that the government under the leadership of Prime Minister Anwar Ibrahim is doing a better job of managing the economy.”

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