Despite projections by economists of a lower Employees Provident Fund dividend rate for this year, they said the fund still offers the best investment option for low-risk savings, and that the federal government should not allow another round of withdrawals.
“Despite that, EPF is a low-risk savings platform. The rates contributors get for their savings are good and still competitive. It is a savings platform that offers low risk combined with returns higher than that offered by banks,” he said. Universiti Malaya economist Datuk Dr Rajah Rasiah said while one would expect a higher dividend to be declared this year as the gross domestic product for Malaysia last year was 8.7% compared with 3.1% in 2021, a lower dividend can be justified because EPF is consolidating the savings.
Rajah recommended that the government use other income sources to financially help underserved Malaysians.