Lim Guan Eng: Lower EPF returns raise concerns of economic inequality

Lim Guan Eng: Lower EPF returns raise concerns of economic inequality



DAP’s Lim Guan Eng today noted that EPF’s 6.15 per cent dividend for 2025 was lower than last year’s 6.3 per cent despite stronger economic indicators. — Bernama file pic

Sunday, 01 Mar 2026 10:18 AM MYT


KUALA LUMPUR, Feb 28 — DAP’s Lim Guan Eng today said the Employees Provident Fund’s (EPF) 2025 dividend rate of 6.15 per cent had disappointed “many” contributors.

In a statement reacting to the announcement, the Bagan MP noted that the rate was lower than last year’s 6.3 per cent despite stronger economic indicators, including Malaysia’s GDP growth of 5.2 per cent in 2025 compared to 5.1 per cent in 2024, alongside lower inflation and unemployment.

He said the disparity between stronger headline economic data and lower EPF returns has raised concerns about how evenly growth is being distributed.

“If the two-tier economy can impact the EPF dividend rate despite strong economic growth, how much worse will the effect be on the 90 per cent of ordinary Malaysians and MSMEs?” he said.


Lim said many among the 18.1 million EPF contributors had expected the dividend rate to be higher given improvements in exports, the stock market and the ringgit.

He said the outcome has sparked concerns about a “K-shaped” economy, where growth benefits are concentrated among the top 10 per cent while the remaining 90 per cent face increasing pressure.

He also said the stronger ringgit, which rose 10.1 per cent against the US dollar in 2025, has affected exporters’ margins and reduced the ringgit value of EPF’s overseas investment income.


Lim added that global uncertainties, including war in the Middle East and tariffs, could weigh on growth and potentially affect dividends in 2026.