Friday, March 5, 2010

EPF@KWSP - EPF Declares 5.65 Percent Dividend Rate For 2009

EPF today declares 5.65% dividend rate for year 2009. That is much higher that 2008 dividend rate which was 4.50%. EPF also announced it earlier than last year which was 17 Mar 2009. The news also mentioned that "The dividend rate was declared on the back of the highest ever net income achieved of RM19.63 billion". Wow... RM19.63 billion @ RM19 630 000 000! Impressive! That is really a lot of money!

How I wish we will be receiving more than 8.50% because that was the highest ever declared dividend which was for year 1983-1987. Anyway I am thankful for the 5.65%.

The 2009 dividends will be credited to its members’ accounts on 8 March 2010, next Monday.

For complete news, please click here.


  1. Great news to all employees. It is not worth to withdraw EPF for house loan then. I am more worried on the BLR now after Bank Negara announced on the increase of overnight policy rate.

  2. Do you buy unit trust using your EPF? Just curious.

  3. Hi Margaret, yes.. good news to EPF members. Personally, I think housing loan is from other source of income and not from retirement saving like EPF. Unless, there are other investment which can yield more stable income than EPF, then that investment can be used to prepare for retirement planning while at the same time you withdraw from EPF for housing loan. Or, do you have any other points to share? Feel free to share here as I wish to know what others are thinking as well :)

    Hi Kris, No, not yet but I have a few friends proposing to me. Any view on this?

  4. Hi Yan. I agree with you that EPF is meant for retirement saving. As for me, I will opt to withdraw partial of EPF to reduce the amount of principal of house loan provided that the BLR is much higher than the dividen rate declared by EPF. Before deciding to withdraw, I should work out some mathematic calculation to convert the simple diveden rate to daily compounding rate. Then I can compare the equivalent dividen compounding rate with house loan interest rate. If the difference is within my target percentage, I will just keep my EPF saving.

    This is just my future planning as I have no experience to withdraw my EPF at the moment. I am just working for about 2 and half years and EPF saving barely contribute any.

    ntv7 news reported that Bank has raised BLR to 5.8% from 5.55%... Thank God that it is not as high as 6%.

  5. Better then last year but i am pretty sure i still can outperform EPF!^^ Lolx..

  6. Hi Margaret, I see. I know quite a number of people also practicing what you're doing. Reducing their housing loan with EPF saving. And it's great that you're doing details calculations and compared them before make your final decision..

    Don't worry, you are still very young. After a few years of saving + working, you will see the EFP saving growing. So, be patient la :)

    Kampunginvestor, hehehe.. I know what you meant. I should seriously look into this soon :) Thank you.