SHAH ALAM - The long-awaited announcements of Amanah Saham Bumiputera (ASB) and the Employees' Provident Fund (EPF) were finally answered yesterday.
EPF executive officer Datuk Seri Amir Hamzah Azizan announced in the EPF financial performance briefing, a dividend of 5.35 per cent for conventional savings and 4.75 per cent for shariah savings for 2022.
It was much lower compared to 2021, with 6.1 per cent in conventional savings and 5.65 per cent for shariah savings.
Both were seen suffering a decrease of 0.75 per cent and 0.9 per cent respectively.
The public in general were dissapointed with the announcement, however, some had expected the decrease dividends this year.
Hamzah explained the decline followed the 2022 financial year, which recorded slower global growth and high inflation rates, causing market performance to decrease and affecting EPF income generation.
It was further enhanced with the tightening of monetary policy by central banks to curb inflation.
Hamzah stated in the same announcement that EPF savings for bumiputeras showed the highest decrease of 70 per cent.
It was a major concern for the future of the bumiputera community’s retirement.
Hamzah said the various withdrawals related to the Covid-19 pandemic significantly reduced the bumiputera EPF savings.
"The overall median savings of contributors were seen to decrease last year compared to the pre-pandemic years.
"It followed the withdrawal of RM145 billion from the EPF savings funds while the country faced Covid-19," he said.
The public was urged not to push the government to allow more withdrawals as it would negatively impact the retirement savings of contributors.
Economist Dr Nungsari Ahmad Radhi commented on the EPF dividend and described the total announced as not low compared to the stock market and economic situation as a whole.
The dividends announced were reasonable.
He said the dividends were not as much as last year because the profits from the EPF investment company were low and the stock market closed below the level at the beginning of the year.
In another development, Umno President Datuk Seri Ahmad Zahid Hamidi stated the 2022 Umno Annual General Assembly (AGM) not contest the top two positions, which were accepted by the Registrar of Societies (RoS).
The proposals and efforts of party members who wanted the top two positions to be contested were not achieved.