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KUALA LUMPUR: The Employees Provident Fund (EPF) Board yesterday announced a dividend rate of 5.50 per cent for Simpanan Konvensional and 5.40 per cent for Simpanan Shariah. This brings a total payout of RM50.33 billion for Simpanan Konvensional and RM7.48 billion for Simpanan Shariah, bringing the total payout amount for 2023 to RM57.81 billion. For the year ended December 31, 2023, the EPF recorded a total investment income of RM66.99 billion, a 29 per cent increase from RM51.91 billion in 2022. EPF in a statement said the amount is net of listed equity write downs recorded for the year. Out of the RM66.99 billion in total investment income, RM5.72 billion was generated from mark-to-market (MTM) gains of securities that have not been realised and will not be part of the dividend distribution. The EPF’s prudent practice has been paying dividends only out of realised income. EPF chairman Tan Sri Ahmad Badri Mohd Zahir said the EPF delivered improved dividends following a resilient performance in 2023, with equities playing a significant role in driving overall performance. “Despite the intensifying geopolitical tensions, elevated interest rates, inflation, regional conflicts, and China’s property sector woes, the global economy showcased resilience and fared better than expected. “This allowed the EPF to actively manage its diversified portfolio and capture opportunities to enhance returns. “After netting off the inflation rate, the real dividend for Simpanan Konvensional was 2.89 per cent and 2.51 per cent for Simpanan Shariah on a rolling three-year basis (2021-2023), exceeding the EPF’s strategic target of at least 2 per cent real dividend over the same period. “As a retirement fund, it is important for the EPF to consistently deliver long-term above-inflation returns to preserve and enhance the value of its members’ savings,” he said in a statement. EPF’s investment assets continued to record a strong growth to RM1.13 billion, an increase of 13 per cent compared to RM1.00 billion in 2022. The increase comprised of income from the portfolio and healthy collection of contributions of RM97.56 billion in 2023, an increase of 15 per cent from RM84.78 billion in 2022. The EPF’s portfolio diversification and active fund management allowed it to deliver improved dividends for 2023. The RM57.81 billion dividend distribution will benefit more than 16 million EPF members, encompassing individuals from both formal and informal sectors. EPF said 2023 saw a mixed performance in the global equities market, particularly between the ASEAN and the developed markets. Ahmad Badri said the overall market volatility in 2023 underscored the importance of the EPF’s robust investment strategy and prudent risk management. RM58.97 billion out of the RM66.99 billion total investment income was generated for Simpanan Konvensional and RM8.02 billion for Simpanan Shariah. Simpanan Shariah derives its income solely from its portion of the Shariah portfolio, while income from Simpanan Konvensional is generated by both the Shariah and Conventional portfolios. The EPF remains the largest investor in the domestic market with an asset under management (AUM) of RM702.48 billion as of December 2023, compared to RM643.38 billion in 2022. Deployment into the domestic market accounted for more than 80 per cent of the 2023 investment allocation, providing capital to Malaysian companies and the economy as a whole. As of December 2023, the EPF holds about 28 per cent of the outstanding MalaysianGovernment Securities (MGS) and Government Investment Issues (GII) issuances and about 12 per cent of the FTSE Bursa Malaysia Top 100 Index market capitalisation. “The EPF’s active participation in the domestic equity market is integral to our mission of creating long-term value for our members. “The EPF continues to increase allocation to external managers, further diversifying its investments while supporting the growth of the domestic fund managers,” Ahmad Badri said. He said views on the global growth outlook are still mixed. “Since the pandemic, the world has had several years of uncertainty, and countries have demonstrated a real sense of resilience and agility. “While the global markets presented formidable challenges, the EPF’s resilient investment approach and unwavering focus on long-term value creation should set the path for it to continue to deliver strong performance and uphold its commitment to its members,” Ahmad Badri said. Starting January this year, the EPF has separated its Simpanan Konvensional and Simpanan Shariah portfolios into their Shariah-compliant investment to allow each portfolio’s returns to be optimised in the long run, with each portfolio having an independent SAA. The separation also ensures that assets under both Simpanan Shariah and Simpanan Konvensional is diversified across asset classes, geographies, markets and industries to ensure sustainable returns. EPF said 2024 is an eventful year for the EPF as it embarks on several initiatives to meet the evolving needs of EPF members, ensuring financial resilience and well-being during their retirement years. The ongoing trend toward a higher prevalence of informal employment over formal employment will drive the continued implementation of EPF’s strategic initiatives. To help members build future income security, the EPF’s range of products and services have been enhanced to tailor to different life stages and financial goals.

KUALA LUMPUR: Maybank Islamic Bhd and Telekom Malaysia Bhd (TM) recently established a partnership to deliver the country’s first Islamic Banking as a Service (BaaS) solution powered by 5G. Targeted for consumers and micro, small and medium enterprises (MSMEs), this collaboration combines Maybank Islamic’s financial services and TM’s recognised Uni5G Postpaid Biz mobile packages, creating access and experiences for digital customers. With local entrepreneurs and MSMEs to gain the most, Maybank Islamic and Unifi Business, TM’s digital business solutions arm, launched Go Niaga, a mobile business banking bundle to help businesses manage finances, improve incomes, and offer digital payment options powered by secure 5G connectivity and networks. The bundle will address this segment’s current market gaps, enabling businesses to better participate in e-commerce and expand their customer reach. Maybank Islamic chief executive officer Datuk Mohamed Rafique Merican said this partnership between TM and Maybank Islamic opens up unique opportunities in delivering Islamic banking services to customers. “This partnership is a significant step forward in financial inclusion. By embedding Maybank Islamic’s BaaS solutions within Unifi Business platforms, previously unbanked or underbanked individuals and businesses will gain access to Maybank’s essential financial services and 5G mobile connectivity through TM’s technologies,” he said in a statement. He said that while the technology originates from the BaaS concept, what makes it unique is its adherence to Islamic principles, making it the pioneering example of its kind in Malaysia. It combines modern technology with the ethical requirements of Islamic finance, providing innovative and faith-based financial services, Mohamed Rafique said. Unifi chief commercial officer for consumer strategy and business Shanti Jusnita Johari said MSMEs are a vital growth engine for the nation’s economy. “This segment accounts for nearly 38 per cent of Malaysia’s gross domestic product (GDP), yet their potential is often dimmed by limited access to digital tools and financial services. “This is even more apparent among underserved segments, micro and small businesses that face the most challenges in accessing financial services and digital innovations necessary to elevate their lives and livelihoods. “As a trusted partner to more than 400,000 MSMEs across the nation, we believe this partnership is a timely intervention to effectively address these challenges and help local businesses seize the digital economy’s opportunities,” she said. Shanti said this partnership is the next milestone in TM’s vision to become a digital powerhouse by 2030. Its mission is to power a Digital Malaysia, improving businesses and communities through technology and paving the way for a digitally inclusive nation.