Kuala Lumpur: The President of the Federation of Chinese Associations Malaysia (Huazong), Tan Sri T.C. Goh, welcomed the Employees Provident Fund (EPF) Board’s announcement of a 6.3 per cent dividend rate for 2024.
However, he believed that the dividend rate for the proposed foreign worker or migrant worker EPF scheme should not be equal to the citizens’ dividend rate.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});He said the Government should clearly stipulate and implement a policy to ensure that only Malaysian citizens fully enjoy the highest EPF dividend rate.
“This is crucial as Malaysian EPF members rely on their EPF savings for their retirement and old-age living expenses,” he said.
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“According to the Government’s previous announcement, migrant workers and their employers will each contribute 2 per cent to EPF.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“In contrast, citizen employees contribute 11 per cent while employers contribute between 13 per cent and 12 per cent, depending on salary levels. This creates a significant difference in contribution rates between the two groups,” he said.
Goh, who is also Federation of Chinese Associations Sabah (FCAS) President, expressed appreciation for the EPF’s 6.3 per cent dividend for 2024.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});He noted that this is the highest dividend since 2017 (6.9 per cent for conventional savings and 6.4 per cent for Shariah savings), describing it as an “encouraging dividend rate”.
He pointed out that EPF’s investment profits increased from RM66.99 billion in 2023 to RM74.46 billion last year, marking an 11 per cent increase.
Within this growth, the dividend rate for conventional savings rose by 0.8 per cent, while the Shariah savings dividend increased by 0.9 per cent, which he deemed reasonable.
He believed that with global economic uncertainties persisting this year and domestic investment and business conditions facing continued challenges, both the Government and EPF must plan ahead to ensure stable economic growth.
He emphasised the need to achieve at least the anticipated 5 per cent annual growth target, which would help sustain favourable conditions and dividend rates for its 16 million members in the coming years.
