Will EPF members under Simpanan Konvensional and Simpanan Shariah always receive the same dividend rates?

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EPF Dividend Rates for Conventional and Shariah Savings May Not Always Be Identical

Employees Provident Fund (EPF) members under Simpanan Konvensional and Simpanan Shariah will not necessarily receive the same dividend rates every year, despite the current coincidence of identical rates for 2024 and 2025. For the year 2025, both savings schemes were announced to receive a dividend rate of 6.15 per cent, a slight decrease from the 6.3 per cent declared for 2024. The EPF manages distinct investment portfolios for each savings type, reflecting differences in available assets, which can lead to varying returns over time.
Factors Influencing Investment Returns

The EPF's overall investment income for 2025 was RM79.15 billion, with equities contributing the largest portion at 62 per cent, amounting to RM49.24 billion. However, returns from equities in 2025 were impacted by the performance of domestic equities and the strengthening of the Malaysian ringgit against the US dollar, which reduced the ringgit value of income derived from US dollar assets. Fixed income accounted for 33 per cent of the total investment income, followed by private markets (RM3.01 billion) and money markets (RM0.63 billion).
Divergence in Historical Dividend Rates

While both Simpanan Konvensional and Simpanan Shariah recorded a 6.15 per cent dividend for 2025 and 6.3 per cent for 2024, EPF CEO Ahmad Zulqarnain Onn clarified that this alignment was coincidental. He indicated that future dividend rates for the two schemes might differ, and it is plausible for the Simpanan Shariah to yield a slightly higher rate in certain years. This potential for divergence is underpinned by the separate management of investment portfolios for each savings type, acknowledging that the asset compositions and market performances can lead to disparate outcomes.
Long-Term Strategy for Return Delivery

Despite the possibility of annual fluctuations, the EPF maintains a long-term strategy focused on delivering a consistent and stable rate of compounding return across both Simpanan Konvensional and Simpanan Shariah. The fund manages distinct investment portfolios for these two categories due to differences in their available investment assets. As of 2025, the EPF managed total investment assets of RM1,409 billion, with RM1,184 billion allocated to Simpanan Konvensional and RM224 billion to Simpanan Shariah, with both portfolios having a 62 per cent domestic and 38 per cent global asset allocation.

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Will EPF members under Simpanan Konvensional and Simpanan Shariah always receive the same dividend rates?

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