EPF dividends over 10 years: did KWSP savings beat inflation and money supply?

For most Malaysian employees, retirement savings build up in the Employees Provident Fund (EPF, or KWSP) through monthly contributions. The useful question is what that money has actually done over a decade, measured against prices and against the growth of money itself.

How much did EPF savings grow in 10 years?

By about 77%. Compounding the conventional dividend declared for each year from 2016 to 2025 (data.gov.my, EPF dividend) turns RM1,000,000 at the end of 2015 into about RM1,770,479 at the end of 2025.

RM1,000,000 compounded at the EPF conventional dividend for 2016 to 2025: a multiple of 1.7705, or 5.88% a year (CapsWindow calculation; no contributions or withdrawals assumed)

The calculation ignores new contributions and withdrawals and simply applies each year’s declared rate to the year-end balance. Real accounts differ, because contributions arrive every month and some money is withdrawn, but the compounded rate shows what a ringgit left in the account for the whole decade earned.

Did it beat inflation?

Yes, every year. The table sets each year’s dividend against December-to-December inflation from Malaysia’s headline CPI (DOSM, 2010=100).

Visual guide

Did it beat inflation?

Real conventional return

• 20163.89%
• 20185.97%
• 20206.68%
• 20212.78%
• 20233.89%
• 20254.50%

06.68

Year	Conventional dividend	Shariah dividend	CPI, Dec to Dec	Real conventional return	RM1,000,000 at end of 2015 becomes
2016	5.70%	—	1.74%	3.89%	1,057,000
2017	6.90%	6.40%	3.51%	3.27%	1,129,933
2018	6.15%	5.90%	0.17%	5.97%	1,199,424
2019	5.45%	5.00%	0.99%	4.42%	1,264,792
2020	5.20%	4.90%	−1.39%	6.68%	1,330,562
2021	6.10%	5.65%	3.23%	2.78%	1,411,726
2022	5.35%	4.75%	3.78%	1.52%	1,487,253
2023	5.50%	5.40%	1.55%	3.89%	1,569,052
2024	6.30%	6.30%	1.68%	4.55%	1,667,903
2025	6.15%	6.15%	1.57%	4.50%	1,770,479

Dividend rates: official data.gov.my dataset. Inflation, real returns (dividend deflated by CPI) and balances: CapsWindow calculations from DOSM CPI. The Shariah account was launched in August 2016 (RinggitPlus); the official dataset shows its first dividend for 2017.

Over the whole decade the CPI rose from 114.8 in December 2015 to 135.5 in December 2025, 1.1803 times or 1.67% a year. Against that, the EPF multiple of 1.7705 is about 1.50 times in real terms. The weakest year was 2022, when inflation of 3.78% left a real return of about 1.52%, still positive. Using annual-average inflation instead of December-to-December gives the same result: no year lost. Shariah savings also lost no year to inflation; their lowest real return was about 0.94% in 2022.

How does it compare with money supply (M2)?

EPF also stayed ahead of M2, but by a smaller margin than it beat prices.

Measure	December 2015 → December 2025	Multiple	Annual rate
EPF conventional dividend, compounded 2016–2025	RM1,000,000 → RM1,770,479	1.7705	5.88%
M2, end-period	RM1,595,853.8 million → RM2,583,795.8 million	1.6191	4.94%
Headline CPI (2010=100)	114.8 → 135.5	1.1803	1.67%
EPF Shariah dividend, compounded 2017–2025 (9 years; M2 and CPI from December 2016)	—	1.6335 (M2 1.5685, CPI 1.1601)	5.60%

M2 is Bank Negara Malaysia’s end-period series published on data.gov.my, in the current classification available from January 2013 and not seasonally adjusted. All multiples are CapsWindow calculations.

EPF savings grew about 1.094 times as fast as M2 over the decade; the Shariah figure is about 1.041 over its nine years. In some single years M2 grew faster than the dividend, for example 8.94% in 2018 against a 6.15% dividend (CapsWindow calculation), so the comparison is sensitive to the period. Ending in December 2024 instead, the conventional dividend still comes out ahead, 1.6679 against 1.5533 (CapsWindow calculation).

Beating M2 means a saver’s share of the economy’s money stock grew a little over the decade. It does not mean every asset or price grew more slowly; property or particular goods can still have outrun the dividend.

Is this the return members actually receive?

Yes, and that is what makes EPF different from many retirement schemes elsewhere. The dividend is a rate the EPF declares each year and credits to members’ savings. The 2025 dividend of 6.15% for both conventional and Shariah savings was announced on 28 February 2026 and credited on 1 March, a total payout of RM79.6 billion (Malay Mail).

The fund’s own investment results sit behind that rate. For 2025 the EPF reported investment income of RM79.15 billion, of which equities contributed 62%, fixed income 33%, private markets 4% and money markets 1%, on investment assets of RM1,409 billion (62% domestic, 38% overseas). The report attributes the lower rate than 2024’s 6.30% to weak domestic equities and a stronger ringgit, which reduced the ringgit value of foreign returns.

In many other markets the headline number is a fund-level investment return, and what lands in a member’s account can differ because of fund choice, fees or a guaranteed minimum. With EPF the declared dividend is the account rate. The gap that matters for individuals is a different one: how much stays in the account. Since May 2024, monthly contributions are split 75:15:10 between Akaun Persaraan, Akaun Sejahtera and the withdrawable Akaun Fleksibel. Money withdrawn from Akaun Fleksibel stops compounding.

What has happened in 2026?

Two things stand out in the reports so far:

• The 2025 dividend of 6.15% was announced on 28 February 2026 for both types of savings (Malay Mail). The 2026 dividend will only be known once the EPF announces it; this note does not estimate it.
• Withdrawals from Akaun Fleksibel kept rising. A research report cited in April 2026 put cumulative withdrawals at RM16.6 billion by about 5 million members, 37% of 13.3 million eligible (RinggitPlus). A Finance Ministry parliamentary reply put the total at RM19.87 billion by 5.5 million members as of 31 May 2026, with RM14.36 billion still in the accounts. The same reply said raising Account 1’s share from 70% to 75% added RM9.1 billion to retirement accounts between May 2024 and December 2025 (SAYS).

How big is the difference over 30 years, and what are the limits?

Small differences in rate add up over a working life. The scenario below is an assumption, not a projection: RM500 saved every month for 30 years (RM180,000 in contributions), compounded monthly.

Assumed annual rate	Balance after 30 years	Note
5.88% (EPF conventional, 2016–2025 average)	RM476,735	assumption that the past decade’s rate continues
2.00% (assumed low rate)	RM245,632	for comparison
5.88%, deflated by 1.67% a year (past decade’s average inflation)	about RM289,924 in today’s money	inflation is also an assumption

All figures are CapsWindow calculations. The calculator lets you change the monthly amount, the rate and the period yourself.

Compare how savings grow at different rates →