Wednesday, February 20, 2013

EPF can afford more than 6.15% dividend

So, according to the bosses (Malaysian Employers), the Employees Provident Fund, EPF, can actually afford to pay more than the declared 6.15% dividend for 2012.

Looking at the impressive performance of the fund, who wouldn't agree with the employers federation's statement. In fact this should be the avenue for the government to show appreciation to the workers in the private sector. Also, to those who did not qualified for the BR1M sweetness. These contributors pay tax and part of the tax monies are given to Malaysians who earn RM3,000 and less.

Remember, this category of people (earning more than RM3,000) are actually left out of the BR1M and BR1M 2.0 payouts. They are discontented and some are cursing their 'luck' for earning RM3,001 and are unable to get the same benefit enjoyed by those earning RM2,999.

Why not give them a little bit more through dividend distributions? After all the dividend will be kept intact in the pension fund account as contributors cannot withdrawn them until they are retired.

Other thoughts on the 6.15% EPF Dividend declared for 2012 a new record.

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Dividend Should Be Higher
TheStar, Feb 19

PETALING JAYA: While welcoming the 6.15% dividend announced by the Employees Provident Fund (EPF), several groups say an even higher amount should be declared.

Malaysian Employers Federation executive director Shamsuddin Bardan said the return on investment stated in the EPF report was very impressive.

“However, based on those figures, we feel that the dividend paid to contributors should also be higher,” he said.

As a huge profit was made on investments using contributors' money, he said the dividend given should reflect this.

Fomca CEO Datuk Paul Selvaraj said EPF contributors had benefited from the sound investments made.
“As long as the EPF makes good investments with good returns, the contributors will continue to benefit,” he said.

Gerakan vice-president Datuk Mah Siew Keong, in a statement, said the high dividend rates should encourage more self-employed workers to contribute to the 1Malaysia Retirement Savings Scheme which provided the same benefits as EPF.

“It is indeed unfortunate to see many self-employed individuals such as hawkers, farmers, fishermen and even housewives being unable to enjoy what normal employees receive from the EPF,” he said. Mah urged EPF to create more awareness about the scheme to attract more workers without a fixed monthly income.

Meanwhile, EPF members are celebrating the 6.15% dividend declared for last year. Many logged on to their EPF i-accounts in the morning of February 18, after the declaration was reported.

Refer: The Star Online


thomas said...

Instead i would be asking the government to stop the low interest rate policy so that there will be higher returns for savings and curb the speculation on properties,
i always wonder why do we have to suffer to help businessman get cheap loans,at present similar conditions in the 80ies we should be having at least 7% return in FD.

gunsirit a.k.a kitou said...

6.15 % dividend - Hmm, I am no longer a contributor, saya pilih pencen sudah..ehhe