EPF Investments Highlights

EPF Declares 5.65% Dividend For 2009

Highest Total Dividend Paid Out of RM19.63 billion The Employees Provident Fund (EPF) Board, with the approval of the Minister of Finance, has declared a dividend rate of 5.65 per cent for the financial year ended 31 December 2009. The dividend rate was declared on the back of the highest ever net income achieved of RM19.63 billion. The net income represents an increase of 34.82 per cent compared to RM14.56 billion recorded in 2008 while the dividend rate for 2009 is a significant improvement of 115 basis points over the rate of 4.50 per cent paid out for 2008. In a statement issued today, EPF Chairman Tan Sri Samsudin Osman said, “2009 was a significant year for the EPF as it rode out the impact of the global financial crisis. While the EPF continues to be challenged by the fragile economic environment, our investments nonetheless delivered a sound performance for the year.” During the year under review, a total of 72.53 per cent of investments were devoted to Fixed Income Instruments in line with EPF’s prudent approach to investment, while 27.05 per cent was in Equities, and the remaining in Property. As at 31 December 2009, EPF’s investment portfolio grew 8.55 per cent or RM29.25 billion to RM371.26 billion compared to RM342.01 billion in 2008. These were invested in instruments detailed in the following table: EPF’S INVESTMENTS IN 2009 AND 2008 Asset Class Investments up to 31 December 2009 Investments up to 31 December 2008 Increase/ (Decrease) (RM billion) (RM billion) % (RM billion) % Malaysian Government Securities 93.11 25.08 96.16 28.12 (3.05) Loans & Bonds 152.96 41.20 137.25 40.13 15.71 Equities 100.43 27.05 87.95 25.72 12.48 Money Market Instruments 23.21 6.25 19.03 5.56 4.18 Property 1.55 0.42 1.62 0.47 (0.07) Total 371.26 100.00 342.01 100.00 29.25 For the 2009 dividend payout, the EPF requires RM3.43 billion to pay a one per cent dividend rate as a result of a larger membership base. This represents a 7.86 per cent increase over the amount of RM3.18 billion per one per cent dividend rate for 2008. Members can check their EPF Account Statement for the crediting of the 2009 dividend from Monday, 8 March 2010 onwards. “Barring any unforeseen circumstances, prospects for 2010 are greatly dependent on the economic performance of the country and internationally. Globally, financial markets continue to be volatile and this may have an impact on the price performance of our investments and future income. EPF will continue to focus on our key goals of preserving the capital of our contributors and ensuring a satisfactory real rate of return,” concluded Tan Sri Samsudin. About the Employees Provident Fund (EPF) The Employees Provident Fund (EPF) is Malaysia’s premier pension fund, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions. As a customer-focused organization, the EPF delivers efficient and reliable services for the convenience of its members and registered employers. The EPF continues to play a catalytic role in the nation’s economic growth, consistent with its position as a leading savings institution in Malaysia. Date : 5 March 2010