EPF Declares 4.50 % Dividend For 2008

Yesterday 16 March 2009, The Employees Provident Fund (EPF) has declared a dividend of 4.50 percent for 2008, lower than the 5.8 percent in 2007.

The lower dividend rate is due to the increase in investment provisioning resulting from the sharp decline in global equity prices brought about by the worldwide financial crisis, the pension fund said in a statement here Monday.

Despite the financial meltdown, the EPF recorded the highest ever earnings of RM20 billion in gross income for 2008, an increase of 9.36 percent over the previous year's gross income of RM18.29 billion.

"While the year 2008 was challenging due to the unprecedented global financial crisis that has impacted economies worldwide, EPF's investment portfolio for the year performed better at the gross income level compared to 2007. However, due to the sharp decline in the equity markets, a large provision had to be made resulting in a marked reduction in net income," its chairman Tan Sri Samsudin Osman said.

My comments :-

EPF main role to keep save EPF contributors money for their retirement has made the organisation keep a conservative approach in investing the EPF fund. However, you and me as EPF contributor has the right to choose whether to keep all our money with EPF or to transfer some of Account I to the Unit Trust Management Consultant (UTMC).

Ask yourself this.. when you have the option to transfer some of your EPF fund to UTMC to get more return in Unit trust fund, should I keep my money in EPF? What is the risk if I put some of my Account I money to the UTMC?

Get some tips from few expert :-

1) Can You Retire ?

2) We all need to be Millionaire

3) Opportunities in Crisis

4) How to make Unit Trust work for you

I hope this info will give you some idea how you can start building your Financial Fortress. Kindly call 012-2892366 for enquiry.