EPF has hinted dividend may be lower for 2013 in June, 2013.

http://www.thesundaily.my/news/744767

Unit trust investment is not needed if EPF has been doing their job in the first place. What people should do is to think wisely prior to making their decision in the next general election.

This post has been edited by felixwang: Jan 22 2014, 11:53 PM

I agree with you, Xuzen. In actual facts, more than 70% of EPF is invested in the debt-market as to guarantee a minimum return of 2.5%pa. Despite a good dividend declaration at an average of 5.5%pa for a period of the past 10 years, it is just not good enough to supports the ever increasing living cost in Malaysia.

EPF should consider investing a larger portion of their bond dominated fund in the equity market or risked defeating its purpose of failing to provide sufficient savings to see their members through retirement. Based on their own statistic that is published in the Star newspaper, more than 75% of EPF members who turn 54 years old in 2013 has RM 50K or less in their EPF savings account.

They should follow the move by Indian Government by allowing their National Pension System (NPS) to invest up to 50% of their fund in the equity market. As a result, NPS is generating a total return of between 9% and 10%pa in the past 5 years. An additional return of 4%pa can be easily translated to 119% in 20 years time.

Some may disagree with the strategy employed by NPS but desperate times need desperate measures. Personally, I feel that medium income earning Malaysian can no longer afford to have a conservative investment scheme.