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FORMER Finance Minister Lim Guan Eng has expressed disappointment over the Employees Provident Fund’s (EPF) 2025 dividend of 6.15%, calling the figure “lower than anticipated” despite Malaysia recording stronger economic fundamentals last year.
“I think majority of the 18.1 million EPF contributors are disappointed with the lower than anticipated dividend.
“We had forecasted a higher rate for last year because we performed better economically. The data is there to digest,” Lim said.
He noted that the 2025 dividend was down from 6.3% in 2024, despite gross domestic product growth of 5.2% compared to 5.1% the previous year, lower inflation at 1.4% versus 1.8%, and a reduced unemployment rate of 3% compared with 3.3%.
Lim also highlighted that the Kuala Lumpur Composite Index closed at 1,680.11 points in 2025, up from 1,642.33 in 2024, while the Malaysian ringgit strengthened 10.1% against the U.S. dollar, making it one of the best-performing currencies in the region.
Average gross exports also rose to 6.5%, compared with 5.4% the year before.
Despite these indicators of economic strength, EPF fund managers cited the KLCI’s less robust performance and the impact of overseas investments denominated in U.S. dollars as reasons for the lower dividend.
Lim suggested the figures may reflect deeper economic disparities. “It is a K-shaped growth where only the rich tend to experience strong growth whereas majority of the people (working class) continue to face high living costs,” he said.
Lim also cautioned that the strengthening ringgit could erode advantages enjoyed by exporters, the country’s main growth drivers.
He urged policymakers to safeguard local small, medium and micro enterprises (SMMEs) and M40 professionals from the fallout of global economic uncertainties.
“If the K-shaped growth can disrupt the EPF dividend despite strong economic data, we have yet to see its impact on the SMME and on the working class,” he said. - March 1, 2026
