The Employees Provident Fund (EPF) expects to declare a dividend rate of between 4.5 percent and 5.5 percent annually despite challenges in the global economy.

Its chief executive officer, Azlan Zainol, said in a good year, the EPF might declare like last year's 5.8 per cent.

azlan"The important thing is capital preservation. We feel that EPF now has got very good investments.

"Going forward, we are steady and comfortable," he said after the signing of Bai Al-Inah financing of RM500 million with Malaysia Building Society Bhd here today.

Azlan said EPF's overseas investments during these challenging times were safe.

"On the positive side, we may find opportunities to buy or sell during the current market uncertainty, on a selective basis," he said.

On its investments in Japan following the earthquake, Azlan said: "Not much (the impact). We put very little in the Tokyo Stock Exchange, less than 0.1 percent."

He said EPF was talking with the government to finalise the terms of the agreement on the development of the 1,200-hectare Rubber Research Institute land in Sungai Buloh.

"We hope to finalise it before year-end," he said.

- Bernama