Long trend
Malaysian KWSP was established in 1951 according to the Employees Provident Fund Ordinance when this law became the KWSP Act 1951. The KWSP foundation is legally obligated to provide 2.5% dividends to retirees. The historical event of the Malaysian moment in 1957 popularly known as the Merdeka event commemorates the independence of Malaysia.
Since then KWSP has been paying annual dividends on funds on deposit which have varied over time, depending on investment results. KWSP has been paying dividends depicts the staircase ladder dividend accumulation over time since 1960. I charted the plot based on the assumption that KWSP usually pays dividends in March to income subscribers and retirees while retaining their dividend savings in their KWSP accounts (no withdrawal from your EPF account). I scripted it out here in this chart.
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Assuming one ringgit was invested in 1960, KWSP would have delivered 4.5x multiple in 2022 to retirees at a steady rate in ~63 years at a CAGR of 2.6%. The highest dividend payment was in the…
