EPF expects to declare 4.5% to 5.5% dividend annually for year 2010

KUALA LUMPUR: The EPF expects to declare a dividend rate of between 4.5% and 5.5% annually despite challenges in the global economy.

Chief executive officer Tan Sri Azlan Zainol said in a good year, the EPF might declare 5.8% like last year.

“The important thing is capital preservation. We feel that EPF now has got very good investments,” he said.

“Going forward, we are steady and comfortable,” he added after the signing of Bai Al-Inah financing of RM500mil with Malaysia Building Society Bhd here yesterday.

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 the fund exposure was less than 1% of its total investment asset.

The EPF only invests in blue chip companies such as Toyota, Panasonic and other big names, Azlan added.

“Needless to say, the markets across the globe will be affected to a certain extent by the tragedy in Japan but we believe that it will only be temporary. Once things have settled down, we believe the market will pull back.”

On another issue, he said EPF was talking with the Government to finalise terms of the agreement on the development of the 1,200ha Rubber Research Institute land in Sungai Buloh

“We hope to finalise it before the year ends. — Bernama