EPF CLARIFIES INVESTMENT INCOME AND 2023 DIVIDEND PAYOUT

By Sharifah Hunaini Syed Ismail

KUALA LUMPUR, Feb 22 (Bernama) -- The Employees Provident Fund (EPF) has reaffirmed that its financial year ended Dec 31, 2023 figures are accurate and comply fully with strict financial reporting standards.

In a statement, the EPF said all investment decisions undergo rigorous due diligence, aligned with EPF’s mandate, and prioritise long-term value preservation.

"As retirement savings are a matter of national interest, the EPF remains steadfast in its commitment to protecting and growing members’ funds with professionalism, accountability, and transparency," it said.

To recap, there were recent comments about EPF’s 2023 financial performance and investment in Malaysia Airports Holdings Bhd (MAHB). 

It said in line with its commitment to safeguarding the long-term financial well-being of more than 16 million members, EPF is seeking to address recent concerns and misconceptions.

The organisation said for the financial year ended Dec 31, 2023, it recorded a total gross investment income of RM66.99 billion, with a net investment income amounting to RM63.48 billion, consistent with the figure presented in Parliament by Finance Minister II. 

"These figures are in line with EPF’s established reporting framework, and adhere to Malaysian Financial Reporting Standards," it said. 

EPF also stressed that there has been no mistake, misrepresentation, or attempt to withhold information as claimed.

The announcement was also reported on its website https://www.kwsp.gov.my/en/w/epf- sustains-solid-performance-for2023 with the titled “EPF Sustains Solid Performance with 5.50 per cent Dividend for Simpanan Konvensional and 5.40 per cent for Simpanan Shariah” on March 3, 2024.

On MAHB share transaction prices in 2023, it explained that the previously cited price range of RM5.40 to RM7.36 per share was contained in the question posed in Parliament by a Member of Parliament. 

"A full review of all 2023 transactions confirms the verified price range was RM6.80 to RM7.70 per share. 

"The total realised profit from these transactions was RM102 million, which includes capital gains and dividends generated by both internal and external fund managers," it said. 

It said the earlier figure of RM100.7 million referenced in discussions excluded some dividends received by external managers and has since been reconciled.

EPF’s investment in MAHB contributed to EPF’s performance. As a result, it was able to declare a higher dividend payout for 2023, with 5.50 per cent for Simpanan Konvensional (compared to 5.35 per cent in 2022), with a total payout of RM50.33 billion; and 5.40 per cent for Simpanan Shariah (compared to 4.75 per cent in 2022), with a total payout of RM7.48 billion.

EPF said it remains committed to transparency and welcomes constructive dialogue with lawmakers, stakeholders, and the public to ensure its policies continue to serve the best interests of both the nation and its members.

-- BERNAMA