EPF has been performing ok and has managed to sail through 1997 Asian financial crisis (one of the worst) as well as 2008 GFC.

EPF has a diversified investment portfolio, from overseas investment, MGS and local equities.

EPF is not like pension scheme fund of gov, whereby when more and more gov servant pension, the more gov burden that needs to pay for the pension scheme.

EPF money come from your own money saved and dividend is paid based on income generated by EPF.
So it is a more and less self sustained mechanism, worst is when EPF investment is not performing, less income generated, then less dividend can be distributed.

Just for reading, just in case for those "worrying" one.
Don't simply worry out of nothing, info is always available, and EPF does openly announce their income situation from time to time on their year or half yearly report.

https://www.thestar.com.my/business/busines...arket-sentiment


The income is just slightly less than last year.
And bulk of investment is on fixed income instrument.

Just to post to clarify just in case misunderstanding of above statement.
It is not gov using EPF money to spend to stimulus the economy.

It is just reducing EPF contribution, so that people have more money in hand, that potential being spent to stimulus the economy

LOL, this is not "benefit" but a big disadvantage of PRS.

Until now, many PRS are underperform compared to EPF, a small number even registered negative figure. While EPF has a peace of mind of capital guarantee with a more steady return.

Tax saving is one just off for particular year, but performance of fund is long term which has more implication of the money saved. A differentiate of 1~2% less performance compared to EPF, can have big difference on the final outcome.

If already want to invest into unit trust in the first place, then by going into PRS to have tax saving - ok
But not solely because of tax saving, then blindly going into PRS - not ok.

Just find the word "benefit" weird, when reading the statement.
Not meant to "shoot" or whatever.

Just post just in case people too focus on tax saving side of perspective, and forgetting about the PRS risk compared to EPF.
PRS is never the same with EPF. They are in different league and different risk exposure.

Cheers.

PRS doesn't have a "interest rate". It is not a FD that have an interest rate nor work as same as EPF.

PRS is a unit trust, its performance is tied to its portfolio investment gain/loss.

All gain or loss is about rise or drop in their investment, which can be seen from its daily NAV movement.
Whether the fund declare any distribution or not, it doesn't matter, as any distribution come from its NAV.
Eg. PRS ABC fund, NAV today is Rm1.00, next day it declares distribution of 3 cents, then you get the 3 cents, but NAV become RM0.97. So your total net worth in the PRS ABC fund still RM1.00.

This is purely for EPF dividend discussion from finance perspective.
Please do not post political related issues or with intention to link to political issues.
Those issues are best being discussed at RWI or serious kopitiam section.

Thank you.

Please do not deviate the topic into to other issue, especially political.

This topic is intended for EPF dividend issue, rate calculation mainly focusing on financial perspective only.

But lately, many posting intended to deviate topic into living cost, even into comparing overseas food, then political issues (and then non-stop political issues posting from there on).
This is the reason some posting were removed especially that induced into many political posts.

If wish to discuss about those political issues, please post at other section like RWI or serious kopitiam section instead of finance section.

Thank you.

This post has been edited by cherroy: Dec 17 2023, 04:31 PM

If wish to discuss on politic matter, please post at other section instead of finance section to avoid finance section being flooded by political posts instead of discussing on finance perspective.

Thank you.

For the removal post.
It is a good discussion on money issue, but please post at other section, as the post is 99.99% chance will be inducing and diverting into non-stop political posts.
Thank you.

Please do not post unnecessary speculation.

The real facts are:
The RM500 comes from gov budget as stated last year, not related to EPF.

How gov funded the 700mil is not related to EPF.
Gov run the financial based on consolidated account basis aka a pool of total collection of money, the Rm700 mil just come from there as same as other allocation in the budget.

Whille for gov budget deficit (if), generally it is funded by issuing MGS, sukuk or whatever type of bond, they are generally being sold at open market, and EPF may or may not purchase, which is another matter.
Even if EPF subscribed those bond, those bond are generating income through its coupon yield and also potential profit made in capital if bond market price is going upward.

So, it doesn't affect the dividend rate 2023, as dividend rate is depended on income generated by EPF investment. The 700mil is not coming from EPF.

As said by other, the positive is EPF has 700mil more in AUM to invest further.
For potential negative part about moral issue, and gov deficit, please post at different section, as this thread is about EPF dividend issues in term of financial perspective discussion only.

Please end those non related to dividend rate issue and do not deviate the topic.
Thank you.

This post has been edited by cherroy: Jan 11 2024, 03:41 PM

There is needless to bring in political figure or related, as it may start on the onset political discussion, there is why such post is removed. As once started, non-stop political issues instead of purely finance related.
Mod team do not want finance section turn into political discussion even though some finance issues may be affected political front, for those, one may start those discussion elsewhere section.

Just stated which year is highest is enough, don't need to purpose bring in specific political figure. As those vested forumers always intend to turn into political discussion whenever.

Finance section should be more about number related discussion.

Thank you.

Please be reminded, no political talk in the finance section.

Thank you.

Please reminded no R&R talk as well in finance section.

Please do not troll.

Finance section is not a serious discussion section. Please do not throw unfounded allegation

Thank you.

Please do not deviate the topic too much, it has OT too much until talk about specific chicken rice price.

For those chicken rice how much, ancient price story, please post at kopitiam section.

For those intend to discuss on inflation hedge through asset diversification, please open another topic for it.

This topic should be solely on EPF dividend matter.

Thank you for the cooperation.

Please do not deviate the topic.

This topic is not about talking overseas study exposure or how is overseas study.
This topic is about EPF as retirement fund.

Leniency is given to talk about issue using EPF to support education purpose, and its impact towards retirement plan, but please do not go beyond EPF issue.

Thank you for the cooperation.

For inflation matter, please create a new topic for further discussion.
Further on from this point, non-related EPF dividend post will be removed.

This thread is solely for EPF dividend matter.

Thank you for the cooperation.

Please back to the topic.

EPF vs CPF comparison is out of topic already, and can be done by creating a newer topic for it.
This thread is about EPF dividend and EPF matter only.

Thank you for the cooperation.

There is no problem to discuss on cons side.

Whilst EPF is never an "investing" but more towards retirement planning.

Invest - Chasing high return at risk of losing capital
Retirement planning - ensure there is money for retirement life.

Even though investment can be part of retirement planning, it shouldn't be whole part of it, as investment has uncertainty factors.

If merely suggestion of investing abc or whatever as a part of diversification of retirement planning, then it can be seen a more productive and draw more positive discussion, instead of belittle whatever product.

Certain investment can turn sour even its looks like best choice at the moment.
See how Yen situation unfolding, previous decade being looked as one of strong currency or safe heaven currency. Look what happen now. EV shares being darling just 2 years ago, now start becoming a red ocean competition.

There is no right or wrong, as we don't know how future is unfolding so needless insist what is the best or which way is right.

Cheers.