The Employees Provident Fund (EPF), or Kumpulan Wang Simpanan Pekerja (KWSP), is a statutory body under the Ministry of Finance that manages the mandatory retirement savings of Malaysia's private-sector workers. Established on 1 October 1951 and now governed by the EPF Act 1991, the fund held RM1.25 trillion in investment assets for 16.22 million members at the end of 2024, making it the country's largest institutional investor. It declared a 6.30% dividend for both Conventional and Shariah Savings for 2024.
- The EPF was established on 1 October 1951 and is now governed by the EPF Act 1991 under the Ministry of Finance.
- Investment assets reached RM1.25 trillion at the end of 2024, up more than 10% from RM1.13 trillion in 2023.
- The 2024 dividend was 6.30% for both Conventional Savings and Shariah Savings, with a total payout of RM73.24 billion.
- Conventional Savings are guaranteed a minimum of 2.50% per year; Shariah Savings carry no minimum guarantee.
Who this applies to: EPF members, Malaysian employees and employers, finance students, and anyone seeking to understand the EPF's role as an institution and investor.
On this page
Every time a private-sector worker in Malaysia receives a payslip, a portion of their income flows into a single institution that now holds more than RM1.25 trillion. That institution is the Employees Provident Fund, or EPF.
It is not merely a savings account. The EPF is Malaysia’s largest mandatory retirement fund and, at the same time, the country’s most influential institutional investor — a major shareholder in many companies listed on Bursa Malaysia and a steady buyer of government bonds.
What is the EPF and who governs it?
The EPF is a statutory body established on 1 October 1951, originally under the EPF Ordinance 1951. Its legal framework is now the EPF Act 1991, which places the fund under the jurisdiction of the Ministry of Finance.
Its core task is simple but immense: to collect mandatory retirement savings from private-sector workers and their employers, invest that money prudently, and pay members an annual dividend. Each member holds a personal account, and savings can be withdrawn at retirement age or under certain conditions.
Overall management rests with the EPF Board, supported by an Investment Panel that provides strategic investment direction. The EPF’s Chief Executive Officer is Ahmad Zulqarnain Onn.
How big is the EPF really?
At the end of 2024, the EPF’s investment assets reached RM1.25 trillion — up more than 10% from RM1.13 trillion in 2023. The fund covers 16.22 million members, including 8.78 million active members.
The table below summarises the institution’s profile at the end of 2024:
| Indicator | Value (end of 2024) |
|---|---|
| Investment assets | RM1.25 trillion |
| Annual asset growth | more than 10% (from RM1.13 trillion) |
| Total members | 16.22 million |
| Active members | 8.78 million |
| Domestic investment allocation | 63% |
| Overseas investment allocation | 37% |
| Total investment income 2024 | RM74.46 billion |
How does the EPF invest members’ money?
As an institutional investor, the EPF spreads its funds across several asset classes. In 2024, equities were the main income engine, followed by fixed-income instruments such as Malaysian Government Securities.
The contribution of each asset class to 2024 investment income (a total of RM74.46 billion) and its return on investment:
| Asset class | % of total income | Return (ROI) |
|---|---|---|
| Equities | ~67% | 9.90% |
| Fixed income | ~29% | 4.27% |
| Real estate & infrastructure | — | 5.13% |
| Money market instruments | — | 1.89% |
Although 63% of assets are invested domestically, global investments contributed more than half of income in 2024: income from global markets reached RM37.44 billion versus RM37.02 billion from domestic markets — evidence that international exposure plays an important role in the fund’s returns.
How much dividend does the EPF pay each year?
This is the figure members most anticipate at the start of each year. For 2024, the EPF declared a 6.30% dividend for Conventional Savings and 6.30% for Shariah Savings — a total payout of RM73.24 billion and the highest rate since 2017.
The history of annual dividend rates (source: official EPF open data at data.gov.my):
| Year | Conventional Savings | Shariah Savings |
|---|---|---|
| 2020 | 5.20% | 4.90% |
| 2021 | 6.10% | 5.65% |
| 2022 | 5.35% | 4.75% |
| 2023 | 5.50% | 5.40% |
| 2024 | 6.30% | 6.30% |
| 2025 | 6.15% | 6.15% |
One important distinction between the two types of savings:
- Conventional Savings are guaranteed to pay at least 2.50% per year under the EPF Act 1991.
- Shariah Savings, first offered around 2017, carry no minimum guarantee — their returns depend entirely on the actual performance of the Shariah-compliant portfolio.
Why does the EPF matter to Malaysia’s economy?
The EPF’s size means its decisions reverberate far beyond individual accounts. As a large holder of government bonds, it helps finance national spending. As a major shareholder in many listed companies, it influences corporate governance and the stability of the local stock market.
The EPF is also part of a broader ecosystem of government-linked funds alongside Khazanah Nasional and Permodalan Nasional Berhad (PNB) — but its mandate differs: it safeguards the retirement savings of ordinary people, not the nation’s strategic capital or retail unit-trust funds.
What’s next
- To see how the EPF acts in the stock and bond markets, read The EPF as an investor.
- Compare its mandate with two other government funds: Khazanah Nasional and PNB.
- To understand the market in which the EPF invests, see Bursa Malaysia.
- Check the official EPF website at kwsp.gov.my for the full annual report and the latest dividend declarations, as asset and dividend figures are updated every year.
What were the EPF's investment assets at the end of 2024?
The EPF's investment assets reached RM1.25 trillion on 31 December 2024, up more than 10% from RM1.13 trillion in 2023, with 63% invested in the domestic market.
What was the EPF dividend for 2024?
The EPF declared a 6.30% dividend for Conventional Savings and 6.30% for Shariah Savings for 2024 — a total payout of RM73.24 billion and the highest rate since 2017.
Are EPF dividends guaranteed?
Conventional Savings are guaranteed a minimum of 2.50% per year under the EPF Act 1991. Shariah Savings, on the other hand, depend entirely on the actual performance of the portfolio, with no minimum guarantee.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Tarikh pelantikan Ketua Pegawai Eksekutif Ahmad Zulqarnain Onn (dilaporkan berkuat kuasa 19 Februari 2024) — tidak diliputi oleh mana-mana sumber yang disenaraikan.
- Tarikh penubuhan 1 Oktober 1951 dan rujukan Ordinan KWSP 1951 — fakta institusi/perundangan tanpa sumber utama yang di-fetch; sahkan dengan penerbitan rasmi KWSP atau Warta Kerajaan.
- Rujukan Akta KWSP 1991 dan penempatan KWSP di bawah Kementerian Kewangan — sahkan dengan teks akta atau laman rasmi KWSP.
- Bulan pelancaran Simpanan Shariah (dilaporkan Januari 2017) — katalog data terbuka menunjukkan dividen Shariah bermula 2017, tetapi bulan tepat belum disahkan dengan sumber utama.
- Jaminan minimum berkanun 2.50% setahun di bawah Akta KWSP 1991 — sahkan dengan peruntukan akta.
- Angka aset pelaburan 2023 (RM1.13 trilion) yang digunakan untuk pengiraan pertumbuhan — sahkan terhadap penyata kewangan rasmi KWSP.
- Jumlah pendapatan pelaburan mengikut kelas aset dalam RM (bukan hanya % dan ROI) — sahkan dengan Laporan Tahunan / penyata rasmi KWSP 2024.
Sources
- EPF investment assets reach RM1.25 trillion, 63% allocated to domestic market — The Vibes
- EPF Investment Assets At RM1.25 Trillion, 63 Pct Invested In Domestic Market — Bernama
- EPF Dividend Of 6.30 Pct For 2024 Is Highest In Seven Years -- CEO — Bernama
- Special Report: Dispelling aspersions surrounding EPF's impressive 6.3% dividend for 2024 — The Edge Malaysia
- EPF Dividend Increase to 6.30% for 2024 with RM73.24 Billion Payout (memetik angka pengumuman KWSP) — AJobThing
- Annual EPF Dividend (open data catalogue) — data.gov.my / Employees Provident Fund
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 28 Jul 2026 | Approved and published. | — |