Is EPF 2025 Dividend Expected to Stay?

 

The Employees Provident Fund(EPF) is expected to declare a 2025 dividend of about 5.8% to 6.3% for Conventional Savings and 5.5% to 6.0% for Shariah Savings, based on current investment performance and fund management considerations. The projection was shared by Global Asia Consulting. 

EPF recorded investment income of RM63.99 billion in the first nine months of 2025, an 11% increase from RM57.57 billion in the same period last year. This reflects a healthy earnings trajectory and provides a solid base for dividend consideration. The projected dividend range is viewed reasonable given this performance and EPF’s governance framework, which prioritises sustainability over short-term gains. The unrealised gains, including mark-to-market gains driven by foreign exchange movements, cannot be paid out. These paper gains may fluctuate and only become distributable once realised. 

The Shariah portfolio does not include conventional bonds, has fewer risk-hedging tools, and is more exposed to equity market cycles. In recovery years, the gap may narrow, but during periods of global uncertainty, such as 2025, a difference of around 0.2 to 0.3 percentage points is typical. 

Source: https://en.wikipedia.org

Expectations of dividends reaching 6.5% or even 7.0%, despite the encouraging nine-month results, are not expected. EPF’s mandate is not to maximise dividends in a single year, but to ensure sustainable returns over decades. With total fund assets exceeding RM1 trillion, a growing number of retirees, and increasingly critical reserve requirements, the fund is particularly sensitive to the risks of over-distribution. From a pension fund governance perspective, Conventional Savings dividend of 5.8% to 6.3% is competitive without compromising financial discipline. 

Over the past five years, EPF dividend rates have remained within a relatively narrow range. Conventional Savings stood at 5.20% in 2020, rose to 6.10% in 2021, eased to 5.35% in 2022, increased to 5.50% in 2023, and reached 6.30% in 2024. Shariah Savings ranged from 4.90% in 2020 to 6.30% in 2024, matching the Conventional rate last year. This historical pattern provides context for why the projected 2025 range is seen as consistent rather than exceptional.

Overall, the outlook suggests a dividend that is in line with past years. It reinforces EPF’s role as a long-term retirement savings fund, focused on stability and sustainability rather than chasing higher payouts in any single year. 

Reference:

EPF 2025 dividend expected to stay within historical range, Samuel Chua, RinggitPlus, 5 Feb 2026

Master Your Meetings!

 

A Harvard report said that 71% of meetings are unproductive. Of the meetings, 65% keep people from doing real work. The best leaders don’t run more meetings. They run the ones that matter. 

The goal: Keep teams aligned, focused, and moving fast. Without wasting time. To run meetings and move the business forward, do the following: 

Weekly 1:1

·       Let the staff drive the agenda

·       Listen first, coach second

·       End with 2–3 clear next steps

·       Review key metrics in 10 minutes

·       Focus on 2–3 high-impact issues

·       End with clear decisions

·       Review KPIs by exception

·       Flag risks in revenue or ops

·       Assign fixes with owners

 

Review last quarter’s goals

·       Debate and choose top 3 priorities - Assign clear owners and resources

·       Bring 3 real pain points

·       Let customers talk 70% of the time

·       Follow up within 30 days Board or Investor Update

·       Share the hard stuff first

·       Highlight 1–2 metrics that matter

·       Ask for help with specific challenges All-Hands

·       Explain the why, not just the what

·       Take live, unscripted questions

·       End with one clear message You may not need all of these. Some might add a daily standup. 

But chances are, your company doesn’t need half the meetings on the calendar now. Use this list to audit what’s working. Cut what’s not. Your team will thank you for their time back. Better meetings = faster decisions, sharper focus, and real momentum.

 

 Reference:

Business Infographics Post on Linkedin

Malaysia’s Growth Exceeds Expectations

 

According to MARC Ratings, Malaysia ended 2025 on a strong footing, with its 4Q2025 gross domestic product (GDP) advance estimate rising by 5.7%, bringing full-year growth to an estimated 4.9%, above consensus expectations. Growth in 4Q2025 was broad-based, led by services (5.4%; 3Q2025: 5.0%) and manufacturing (6.0%; 3Q2025: 4.1%) due to strong external demand for electrical and electronic (E&E) products. Agriculture rebounded to 5.1% (3Q2025: 0.4%) on a low base effect and stronger palm oil demand, while construction expanded at 11.9% (3Q2025: 11.8%), supported by ongoing public and private investment projects. Meanwhile, mining moderated to 1.1% (3Q2025: 9.7%) due to weaker demand for crude oil and natural gas. Going forward, the strong growth momentum is expected to persist, supported by robust domestic and external demand despite renewed geopolitical tensions. MARC Ratings projects economic growth for 2026 at 4.6%.

Source: https://en.wikipedia.org

In 2025, Malaysia’s headline inflation edged up further to 1.6% in December, from 1.4% in November, bringing the yearly average to 1.4%. The increase was largely driven by alcoholic beverages and tobacco, where inflation rose to 2.5% (Nov: 2.4%). The rise in this category was due to a higher excise duty imposed by the government. The second factor driving the inflation rate is the housing and utilities segment which inched up to 0.9% (Nov: 0.7%) alongside clothing and footwear by 0.1% (Nov: -0.1%). These increases, however, were partially offset by stable inflation in key sub-sectors such as food and beverages (Dec: 1.5%; Nov: 1.5%) and a deceleration in transportation to 0.1% (Nov: 0.2%) reflecting lower global oil prices. While inflation remains stable for now, renewed geopolitical tensions could disrupt supply chains and add to inflationary pressures. 

Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 2.75% recently, cited firm economic growth and moderate inflation prospects as reasons to retain the rate. 

Meanwhile, foreign portfolio flows remained positive in December, albeit at a slower pace, as bond inflows moderated to RM3.0 billion from RM6.1 billion in November, while equities recorded continued outflows of RM1.9 billion (Nov: -RM1.2 billion). As a result, foreign holdings of Malaysian Government Securities (MGS) and Government Investment Issues (GII) edged higher to 21.6% of the market (Nov: 21.4%). By late January, the ringgit had approached 3.93 USDMYR, strengthening sooner than anticipated. The ringgit may strengthen and remain within a 3.80-3.90 USDMYR range in the near term. (Blog writer’s estimate!) 

Unless there are adverse geopolitical tensions (like China-Taiwan), new tariffs or sanctions and domestic political instability, the prospects remain positive for Malaysia in 2026. 

Reference:

Monthly Review: Malaysia’s Growth Exceeds Expectations, Press Announcement, MARC Ratings Berhad, 30 January 2026

Are Foreign Chains a Threat?

 

There has been increasing concern about foreign food and beverage (F&B) brands, particularly Chinese ones, causing uneven competition in the local market. Economists and industry observers are divided, with some calling for action while others see these brands as beneficial for consumers, job creation, and keeping local companies “on their toes”. The Malaysian government is considering stricter rules for foreign-linked F&B companies after complaints that brands like China’s Mixue and Chagee threaten local businesses. Some like Mixue compete on pricing, as their products are often much cheaper than most local drinks and desserts.

 

Source: https://en.wikipedia.org

The Domestic and Cost of Living Ministry (KPDN) is reported to be reviewing guidelines to address loopholes that previously allowed the rapid expansion of foreign brands. This includes examining capital requirement thresholds and outlet size, as currently outlets smaller than 1,000 sq m are not subject to impact assessments. 

Socio-Economic Research Centre executive director Lee Heng Guie notes that foreign chains’ aggressive expansion of new outlets has threatened the sustainability of local small and medium enterprises (SMEs), even as it has created employment, provided local training, and added variety to F&B offerings for domestic consumers. 

Mixue, for example, entered the Malaysian market in 2024 and has since expanded to around 500 outlets. Foreign chain operators have deep capital, centralised supply chains, branding quality and highly optimised pricing models, which enables them to offer competitive prices that local SMEs cannot match. 

Local SMEs are facing rising operational and regulatory costs, such as higher minimum wages, rental, e-invoicing, and raw material prices, making price competition with deep-pocketed foreign chains “difficult”. There is also evidence that aggressive expansion and rental bidding by foreign businesses in F&B are driving up rental rates for prime locations. 

Malaysia has set a strategic goal to establish itself as a regional franchise hub in South-East Asia by 2030 under the National Franchise Development Master Plan 2021 to 2025. This is projected to contribute approximately RM46bil to Malaysia’s gross domestic product by 2025. As of December 2022, there were more than 1,000 registered franchisor companies, comprising 713 local and 428 foreign franchisor companies. 

If a single type of foreign chain grows rapidly without constraint, it could potentially reduce competition in the long run – exactly the opposite of what competitive markets require. This concern must be addressed through competition law enforcement, not trade barriers per se. When the regulatory environment is predictable and enforceable, foreign investment contributes to growth, jobs, innovation, and consumer welfare. 

Locally controlled businesses need incentives to thrive. It cannot be on “cheap” labour – better to support greater automation then importing labour from Bangladesh or Indonesia. So, it is incentives or money into R&D which the government could assist. Less labour, higher productivity can match entrants from China and beyond. 

Reference:

Foreign chains – threat or opportunity? Yvonne Tan, Starbiz 7, The Star, 2 Feb 2026

Could We Emulate Hanoi’s Clean-up Campaign?

 

Cleanliness is a virtue which should be an inherent part of our human character. This aspect of our lives should not only be confined to our homes but extend to public places. For any city, its cleanliness reflects the positive social character of the people living there. A city with admirable traits like cleanliness reflects its inhabitants’ desire for discipline, civic consciousness and pride, which earns the respect of visitors and tourists. 

From a health standpoint, living in a clean environment cuts the chances of being afflicted by dangerous diseases. An ecosystem that provides clean water and unpolluted air is crucial for fo overall health. Clean places help check the spread of bacteria and viruses responsible for illness or discomfort.

 

Source: https://en.wikipedia.org

Recognising these tangible benefits, Vietnam’s capital, Hanoi, has embarked on a mission to spruce up the city. To help achieve this goal, it has installed AI-powered surveillance cameras to monitor and deal severely with illegal waste disposal. The authorities have mounted these cameras in several central districts. The initiative is aimed at improving metropolitan cleanliness in the city. It holds offenders responsible for wrongful waste disposal and for delays in rubbish collection. 

Local authorities ensure waste management regulations are complied with through camera footage which identifies the culprits and fines the offenders. The goal is to ensure urban cleanliness. Entrusted with this task is Hanoi’s Department of Natural Resources and Environment (DoNRE) which implements standardised guidelines, managed cost structures, and bidding procedures for city-wide environmental sanitation projects. The implementation in the city’s central districts includes maintaining clear pedestrian walkways and streets, allowing modern sanitation vehicles to operate efficiently. 

Enforcement commenced on 14 and 15 January 2026 with images of violations captured by AI cameras. They were sent from the Hanoi Police Command Information Centre to the respective police units for verification and processing. This procedure reinforces clarity and caution and helps to deter the problem of violations recurring once enforcement officers leave an area. The surveillance system helps identify issues relating to cleanliness such as prohibited waste disposal, not adhering to the disposal of rubbish at specified times and locations, and not collecting and transporting waste when scheduled. Violators caught on camera face strict penalties, as outlined in Decree 45 of the Vietnamese government. Individuals who dump waste on walkways and roads can be fined between 1m and 2m VND ($40–80). For household waste sorting violations, fines range from 500,000 to 1m VND ($20–40). 

Camera enforcement enables authorities to conduct regular inspections of sanitation contractors responsible for cleaning highways and elevated roads. This is to prevent the accumulation of waste, dust and stagnant water, ensuring a cleaner and healthier urban environment. Effective urban management, using technology to enhance environmental responsibility and improve residents’ quality of life is the thrust of Hanoi’s endeavours. The policies to spruce up the city are forward-looking as they help to ensure cleanliness in the city. 

Can we do that in our cities in Malaysia? 

Reference:

Malaysia’s cities should emulate Hanoi’s clean-up campaign, Benedict Lopez, Aliran, 6 Feb 2026

 

Happy Chinese New Year!

 

 

 

Dear readers,

Our blog will be taking a break this week for Chinese New Year. We will be back on 23 February 2026!

 

Meanwhile, have a wonderful holiday!

Is Your EPF Savings Enough?

 

EPF’s framework defines ‘adequate’ retirement savings at RM650,000 to support a reasonable standard of living, while ‘enhanced’ savings of RM1.3 million offer stronger financial security. Recent data shows that nearly 74% of active EPF contributors have less than RM100,000 in their accounts upon retirement — a sum that will last just over five years for a single person or only three to four years for a couple. That amounts to RM1,500 per month for a single person or RM2,500 for a couple — even lower than the current minimum wage of RM1,700 per individual.

 

Source: https://en.wikipedia.org

It has been estimated that 85% of the Malaysian labour force do not earn enough to fall within the income tax paying bracket. With low wages, contributions to retirement funds such as EPF also remain low among a vast majority of the labour force. For many, approaching retirement age is like staring into a chasm. With little money to support themselves, retirement means low quality of life at best, and too little money to get by at worst. The EPF has estimated that one needs a basic savings of RM390,000 upon retirement to meet Retirement Income Adequacy level, but this only highlights the gap between ideal and reality. Projected over a 20-year retirement period, it generates a modest monthly income of around RM1,300 to RM1,625, still short of minimum wage. According to the retirement fund, this is enough only to cover basic needs, but far from a comfortable lifestyle. 

As the cost of essentials such as food, healthcare and utilities rise in tandem with inflation and cost of living, the RM390,000 may not even last the 20-year estimate. Longer life expectancy will just pile on the pressure. As they are now expected to live longer post-retirement, retirees will need even more money in their savings to last longer than two decades. Without proper planning, even decades of contributions may not be enough for retirement needs. 

At the next level, EPF’s own framework defines retirement savings of at least RM650,000 as “adequate”, given that it is sufficient to support a “reasonable” standard of living. To ensure stronger financial security, one will have to ensure savings in retirement funds will come up to at least RM1.3 million, defined as the “enhanced” level. 

This issue is not just about those who have already clocked out for the last time. Future generations of retirees, many of whom are now engaged in informal employment or gig work, also face the possibility of being heavily dependent on their EPF savings, especially if they are no longer gainfully employed. 

Gig workers such as e-hailing or p-hailing drivers may now contribute to EPF voluntarily through the i-Saraan Plus scheme. They may contribute any amount they wish, and under a new scheme in Budget 2026, the government offers a grant of up to RM600 a year to match their contributions. 

But given the quantum of their contributions, the government’s matching grant is not expected to take them very far. Like everyone else, they will face the challenges posed by inflation, rising cost of living, and extended lifespan with little or no money left in their old age.

For seniors who do not have medical insurance, failing health will mean more out-of-pocket expenses. 

Several elderly Malaysians have fears of running out of money just a few years after retirement. As the proportion of the elderly in Malaysia rises, so does the urgency to strengthen social protection systems and rethink how we approach retirement. 

The EPF truth is a gentle wake-up call, reminding Malaysians that preparing for retirement today is the only way to ensure dignity and peace of mind tomorrow. 

Reference:

For most, EPF savings may no longer be enough, Alysha Edward, FMT, 3 Feb 2026