The Employees Provident Fund (EPF) today announced a six per cent dividend for the year ended Dec 31, 2011.

EPF Declares Decade-High Dividend Of 6.00 Per Cent For 2011

Record RM24.47b Dividend Payout on RM27.24b Gross Investment Income The Employees Provident Fund (EPF) Board, with the approval of the Minister of Finance, has declared a dividend rate of 6.00 per cent, the highest in the last 10 years, for the financial year ended 31 December 2011. The dividend rate, an increase of 20 basis points over the 5.80 per cent rate paid out in 2010, translates to a total of RM24.47 billion being distributed to its members.    Read the rest of the news here..  (Source : EPF News)

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Finally the moment we have been waiting for has come...
The Employees Provident Fund (EPF) has declared a dividend of 5.8 percent for 2010.

I was wrong...I predicted a return of 5.95% ~ read my earlier post on EPF dividend 2010 posted on 7 February 2011. It looks like the Quarter 4 Income was not that high as I expected i.e. RM5.50 billion.


Read the news from the Star online

EPF declares higher dividend of 5.8% for 2010

KUALA LUMPUR: The Employees Provident Fund (EPF) has declared a dividend of 5.8 percent for 2010, up from 5.65 percent declared the year before, buoyed primarily by good performance in the equities market.

“The remarkable investment income achieved in 2010 was especially driven by the performance of equity investments,” said EPF Chairman Tan Sri Samsudin Osman in a statement on Sunday.

“The improved financial and economic conditions provided the market with sufficient liquidity, allowing profit taking activities throughout the year.

“The dividend amount paid out is derived after deducting net impairment allowance on financial assets, investment expenses, operating expenditures and statutory charges as well as dividend on withdrawals,” he said.

EPF will be paying out a total of RM21.61bil to members, an increase from the 2009 dividend payout of RM19.37bil.

The dividend rate of 5.8 percent underscores an impressive year in which gross investment income reached a historical high of RM24.06bil, reflecting a 39.76 percent increase over the RM17.22bil gross investment income recorded in 2009, the statement said.

For the year under review, a total of RM10.94bil was earned from equities, a significant increase from RM4.85bil earned in 2009.

Loans and bonds were the second largest investment income contributor in 2010, recording RM7.02bil in gross investment income, compared to RM6.63bil posted the previous year.

Malaysian Government Securities was the third largest income earner for the year contributing RM5.30bil compared to RM5.22bil in 2009.

The year 2010 saw about two-thirds of EPF’s total investment assets remaining in low-risk fixed income instruments with stable streams of income.

“As a retirement fund, our primary objective is the preservation of capital while at the same time adding value to members’ retirement savings. In pursuit of this objective, we will continue to adopt a prudent investment approach,” Samsudin said.

Members can check their EPF Account Statement for the crediting of the 2010 dividend, either via EPF Kiosks, counters or i-Akaun, from Monday, 21 February 2011.

Source : The Star Online

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The Employees Provident Fund (EPF) Board, with the approval of the Minister of Finance, has declared a dividend rate of 5.65 per cent for the financial year ended 31 December 2009. The dividend rate was declared on the back of the highest ever net income achieved of RM19.63 billion.

Extracted from the Press release (in respect of EPF Dividend for 2009) dated 5 march 2010. For full text click here

In a month from now (maybe less) we will know what the dividend rate will be like...I just can't wait to hear from the EPF Board.
Based on my own prediction the dividend rate will be higher than the 5.65% declared last year. I am looking at 5.95% or maybe 6.00%. I want higher return on my EPF savings. What about you?

This is how I got my dividend rate for 2010

My own formula >>> Income attributable to EPF members in Current Year (Income CY) divide by Contributions Account in the Previous (CAPY) or simply
CY Income / CAPY


1. For 2008 Dividend
RM14.30 Billion (i.e. RM15.02 Billion - Reserve RM0.72 Billion) / RM317.32 Billion = 4.51% (Variance = -0.01%)
Note : Actual Dividend declared was 4.50%

2. For 2009 Dividend
RM19.62 Billion (i.e. RM19.65 Billion - Reserve RM0.03 Billion) / RM344.64 Billion = 5.69% (Variance = -0.04%)
Note : Actual Dividend declared was 5.65%

3. Estimated 2010 Dividend
a. Estimated CY Income = RM 22.27 billion (Q1 2010; RM5.55 billion + Q2 2010; RM5.47 billion + Q3 2010; RM5.75 billion + Q4 2010 ; RM5.50 billion (estimate))
b. CAPY = RM373.74 Billion
c. Dividend rate = 5.96 %

You may want to read this article from The Malaysian Insider...
EPF dividend creeps up to 5.85pc for 2010, says source

Come on EPF, give us higher return...make us happy :)

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EPF has just announced that employees monthly statutory contribution rate will be reverted to 11 percent with effect from January 2011 salary. Those who opted out of this ruling will not have any effect.

EPF Employee Contribution Rate Back to 11 Per Cent January 2011


The Employees Provident Fund (EPF) monthly statutory contribution rate for employees will revert to 11 per cent from 8 per cent with effect from January 2011 wage and the contribution to be paid to the EPF from February 2011 onwards.

The employees’ statutory rate was lowered for a two-year period from 11 per cent to 8 per cent beginning January 2009 to December 2010 wage.

Employers are advised to ensure that the correct amounts are deducted from the employees’ wages based on the new contribution rate and remitted to the EPF starting from February 2011 contributions.

Members who had previously submitted Form KWSP 17A (AHL) Khas/KWSP 17AA Khas to maintain the contribution rate at 11 per cent during the two-year period would not need to take further action.

The employers’ share of the monthly contribution to the EPF remains at 12 per cent.

Employers who need more information may visit the nearest EPF branch, contact EPF Call Centre at 03-8922 6000, or post their enquiries via myEPF website at Enquiry.


(NIK AFFENDI JAAFAR)
General Manager
Public Relations
Employees Provident Fund

Date: 18 November 2010

Source: EPF Website

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Yes. 5.65%. An increase of 1.15% from the 4.5% declared for 2008. I hope next year the rate will be more than 6%. Come on EPF...make us happy :)
For Amanah Saham Wawasan. I bet you will pay 2% higher than EPF.

EPF’S INVESTMENTS IN 2009 AND 2008

Asset Class	Investments up to 31 December 2009		Investments up to 31 December 2008		Increase/ (Decrease) (RM billion)
	(RM billion)	%	(RM billion)	%
Malaysian Government Securities	93.11	25.08	96.16	28.12	(3.05)
Loans & Bonds	152.96	41.20	137.25	40.13	15.71
Equities	100.43	27.05	87.95	25.72	12.48
Money Market Instruments	23.21	6.25	19.03	5.56	4.18
Property	1.55	0.42	1.62	0.47	(0.07)
Total	371.26	100.00	342.01	100.00	29.25

Source : The Employees Provident Fund (EPF) website

For the 2009 dividend payout, the EPF requires RM3.43 billion to pay a one per cent dividend rate as a result of a larger membership base. This represents a 7.86 per cent increase over the amount of RM3.18 billion per one per cent dividend rate for 2008.

Members can check their EPF Account Statement for the crediting of the 2009 dividend from Monday, 8 March 2010 onwards.

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The Prime Minister Datuk Seri Najib Tun Razak has just finished his Budget 2010 speech. The following are the points / areas that affect me and my family...and maybe you :)

• Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012.
  
• Tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild. 
  My Say : This is a good move by the government to get a share from the profits / gains from property players / speculators. I hope in a way it will be able to control the rising of property prices due to manipulation / speculation by certain group of people. eg. the developer and the gang.
  
  

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Yesterday Permodalan Nasional Berhad (PNB) announced a 6.30 Sen Dividend per unit of Amanah Saham Wawasan 2020 (ASW 2020) for the year ending 31 August 2009. This year's dividend is lower than the 7 sen declared last year. If I am not wrong it is the lowest since the fund inception date :( The reason given is due to the fund’s 41% increase in size over the past one-year period.

Nevertheless, as a unitholder and participant through the Employees Provident Fund (EPF) members' investment scheme, I am quite happy with the return ;) ... at least it gives better return than EPF...


Have you invested / participated through the EPF members' investment scheme? If you have not, do read my earlier post ~ INVEST IN AMANAH SAHAM WAWASAN (ASW)

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Good news for Teachers and supporting staff of Government schools. If you are in need of cash to settle your long outstanding credit card balance or simply to top up your 10% down payment to your dream home, or whatever. You can now apply personal loans from Malaysia Building Society Berhad (MBSB), a subsidiary company of EPF.

EPF firm offers loans to gov’t school teachers
2nd July, 2009

KOTA KINABALU: In honour of teachers and supporting staff of government schools, MBSB, a subsidiary of KWSP (Employees Provident Fund), is offering personal loans at fixed interest rate of five per cent and a repayment period from two to 15 years, said its Sabah branch manager Terrence Adrian Mojingol.

The offer is for a limited time only from now until 15 August.

The minimum loan is RM3,000 up to a maximum of RM150,000. The borrower must be a permanent staff, earning at least RM700 a month. Loan application is hassle free and does not require a guarantor. Moreover, approval is fast.

Repayment is by salary deduction from as low as RM29 a month over 15 years for a RM3,000 loan.

This product is known as Personal Financing-I (Islamic) or Pembiayaan Peribadi-i.

Borrowers are also given group insurance coverage under Takaful Insurans.

MBSB has branches at Kota Kinabalu, Sandakan and Tawau. Its officers are also visiting schools in rural areas where MBSB has no presence, according to Mojingol.

Source : New Sabah Times

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Do you know that you can maximise your EPF savings (for your retirement needs) by investing your money in your Account 1(***see note below) in Amanah Saham Wawasan (ASW)?

You Do if you have already done so.
You Don't if you have not done so (even if you knew it!).


*** You want to know how much you can withdraw from your Account 1. Please check here

Why invest in ASW?
The return is much better than keeping your money in EPF. Average return is about 7% per annum. Just imagine, by investing your money in ASW, you may see your investment double in 10 - 11 years time.

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