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The rate is slightly higher than the 4.25 percent for 2002 which is the lowest dividend rate in 40 years. The last time the dividend rate was lower than 5.0 percent was in 1962 when it was 4.0 percent.

The higher dividend for 2003 was a result of higher investment income recorded by most asset classes of its investments, especially in equity, EPF said in a statement today which was carried by Bernama.

Gross income for the year stood at RM11.09 billion against RM10.63 billion in 2002.

"For the year, to pay a one percent dividend, the EPF required an income of RM1.99 billion. The net income of RM9.02 billion translated into a 4.5 percent dividend rate," its chairperson Abdul Halim Ali said.

He said the board was satisfied with the overall performance of the EPF which reflected its prudent and effective strategies in the domestic market.

RM222b investments

As at Dec 31, 2003, a total of RM222.21 billion was invested in various instruments, of which Malaysian Government Securities (MGS) accounted for RM84.99 billion or 38.26 percent.

Loans/bonds took up another RM60.91 billion (27.41 percent), money market instruments RM22.52 billion (10.13 percent), equity RM52.38 billion (23.57 percent) and property RM1.41 billion (0.63 percent).


Income from equity showed the biggest increase in value terms, reflecting the buoyant mood of the stock market in the second-half year, while income from money market instruments dipped by RM211 million because of the prevailing low interest rate regime.

Abdul Halim said the practice of providing for unrealised losses in the equity market during the past few years was paying off.