00:00Higher dividends from employees' Provident Fund savings will encourage contributors to save more for retirement, according to economist Jeffrey Williams.
00:11However, he said only those with a good level of savings will benefit, leaving out millions with low balances.
00:17Williams said people prefer high-return, low-risk investments like EPF, especially since contributors cannot lose their savings.
00:25He added that higher savings lead to greater returns due to compounding, helping contributors reach their target savings faster while also allowing EPF to invest more diversely.
00:35On Saturday, EPF declared a 6.3% dividend for 2024 for both conventional and sharia accounts, with Chairman Zulkif Ali attributing it to a diversified investment strategy.
00:46Meanwhile, economist Raja Rassia suggested that Malaysians should increase their EPF contributions instead of opting for private retirement schemes as EPF offers higher dividends and greater security.
00:58He also suggested that the government further raise dividends given stricter withdrawal regulations and a broader investment portfolio.
