EPF (KWSP) just did something that caught everyone’s attention.
After delivering 6.3% dividends in 2024, rumours are now swirling that 2025 could repeat the same performance — or maybe even go higher. But let’s be real for a moment…
👉 Is this sustainable?
👉 Is it fair to all contributors — from B40 to T20?
👉 And should younger contributors be taking more risk than older ones?
Let’s break it down in simple terms.
Where Does EPF’s Massive Profit Really Come From?
For the first 9 months alone, EPF recorded nearly RM64 billion in investment income. That’s not pocket change.
Here’s the interesting part:
About 46% of EPF’s assets are in equities (stocks)
Around 45% are in fixed income (bonds)
The rest are spread across property, infrastructure, and money markets
But here’s the twist 👇
Almost 70% of EPF’s income actually came from equities, even though equities make up less than half of total assets.
📌 Translation:
Stocks are risky, but they’ve been doing the heavy lifting.
Local vs Overseas Investments — Why EPF Can’t Go “All In” Globally
Many people ask:
“Why not invest more overseas if returns are higher?”
Simple answer: risk + responsibility.
EPF doesn’t serve just one group. It serves:
Young workers
Older contributors close to retirement
People with very different risk tolerance and financial literacy
Yes, overseas markets offer higher potential returns — but they also come with:
Currency risk
Market volatility
Political and policy uncertainty (hello, tariffs and rate hikes)
That’s why EPF keeps a balanced approach:
~60% domestic investments
~40% global exposure
It’s not about chasing the highest return.
It’s about protecting retirement money.
Why Interest Rates Matter More Than You Think
Here’s something most people miss 👇
When interest rates fall:
Fixed income returns get lower
Investors are forced to take more risk just to maintain returns
That’s exactly what’s happening globally.
Central banks are cutting rates to support economic growth — but that also means:
EPF must carefully increase equity exposure
Diversification becomes critical
Risk management matters more than ever
This isn’t recklessness — it’s strategy.
Is EPF Under Pressure to Maintain 6%+ Dividends?
Short answer: Yes, expectations are rising.
When EPF publicly releases strong numbers, people naturally expect:
“If last year was 6.3%, why not 6.5% next year?”
But markets don’t work that way.
Dividend outcomes depend on:
Global markets
Interest rate decisions
Currency movements
Geopolitical risks
A lower dividend doesn’t mean EPF failed.
It means EPF stayed disciplined.
So… Should You Rely on EPF Alone?
EPF is an excellent foundation — but it was never meant to be your only wealth engine.
That’s where personal investing comes in.
Not to gamble.
Not to chase hype.
But to grow your money intelligently, based on your own risk level and timeline.
Want to Grow Your Money Beyond EPF? Here’s What I Use 👇
Hey! I’ve been using a wealth management app called Versa to grow my money — and honestly, it makes investing way less intimidating.
✔ Easy to navigate
✔ Beginner-friendly
✔ Managed by experts from AHAM Asset Management Berhad
If you want to start investing smartly (without overthinking everything), you should give it a try.
🎁 Bonus:
Sign up using my link and get RM10 reward when you complete these steps:
1️⃣ Download the app:
👉 https://download.versa.com.my/1bAf/referral?deep_link_value=UAVR6K5X
2️⃣ Sign up using referral code: UAVR6K5X
3️⃣ Complete the onboarding steps
4️⃣ Make your first cash-in of minimum RM100 into any Versa product
That’s it.
Sometimes, the smartest move isn’t chasing rumours —
It’s starting early and staying consistent.
🔥 If this article helped you understand EPF and investing better, share it with your friends.
You might help someone make a smarter money decision today.
#EPF #KWSP #Dividend2025 #PersonalFinance #InvestSmart #VersaApp #WealthBuilding #MalaysiaFinance #FinancialFreedom
