THE Employees Provident Fund (EPF) is poised to deliver potentially higher dividends to its members, buoyed by robust growth in investment income for the first nine months of 2025.

According to figures released, the EPF recorded total investment income of RM63.99 billion for the period ending September 30, 2025, marking an 11 per cent increase from RM57.57 billion in the corresponding period last year.

The third quarter alone saw income rise 27 per cent to RM25.07 billion from RM19.67 billion in the same quarter of 2024.

Equities remained the dominant contributor, generating RM16.95 billion or 68 per cent of the fund’s total investment income for the quarter.

Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, attributed the growth to the EPF’s disciplined and diversified investment strategy, including exposure across multiple asset classes and geographies.

“The improvement in investment has allowed the fund to ride the market uncertainties effectively,” he said. “This requires skill and discipline, as the market shock in early April 2025 due to the United States Liberation Day tariffs could easily sway the risk appetite towards a defensive strategy.”

Dr Mohd Afzanizam emphasised that the timing and quality of investment decisions play a crucial role in determining returns. “It also indicates that EPF is well advised by their own investment research and fund managers who are highly skilled and experienced,” he added.

Despite the strong performance, the economist cautioned that downside risks remain. He highlighted valuations in artificial intelligence-related stocks, which are susceptible to price corrections, and noted that the timing of the US Federal Reserve’s planned interest rate cut in December 2025 could affect performance.

“The fourth quarter performance will be a key factor that will determine how much dividend rate can be announced next year,” he said.

EPF had previously declared a dividend of 6.30 per cent for Conventional Savings on March 1, 2025, amounting to a total payout of RM63.05 billion, and an identical 6.30 per cent for Shariah Savings, representing RM10.19 billion.

This brought the total dividend payout for 2024 to RM73.24 billion, benefiting more than 16 million members.

The fund’s strong earnings underline the effectiveness of its investment approach, balancing risk management with opportunities for growth, and suggest a potentially optimistic dividend announcement for members in the coming year. – November 17, 2025