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According to a source familiar with the matter, the dividend for conventional savings is expected to be between 4.8% and 5.1% while for shariah it could range from 4% to 4.5%.
EPF is expected to make the announcement tomorrow unless there are last-minute changes.
“However, the rates are definitely much better than commercial bank interests for fixed deposits. Under the circumstances, they should be acceptable, especially those with high savings in their accounts,” he told FMT.
The source said despite the sharp drop in the rates, it was the best the fund could do following the performance of the global financial markets over the last two years.
EPF’s dividend payout for conventional savings have ranged from a low of 5.2% (2020) to a high of 6.9% (2017) over the past decade.
Last month, Yeah Kim Leng of Sunway University told FMT that most international funds, including EPF, were expected to record losses or report poor performance for 2022 due to rising interest rates which have battered capital markets last year.
He said sizable parts of EPF’s portfolio were in fixed-income securities and foreign stocks, which had a major impact on its profits.
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