As of December 31, 2023, the Employees Provident Fund (EPF) boasts a membership of 16.07 million, with a whopping total savings of RM1.087 trillion.
A closer look at the socioeconomic tiers reveals the stark imbalance further. The top 20% (T20) of members, though only 3.21 million strong, hold an overwhelming RM896.7 billion in savings, amounting to 82% of the total savings.
On average, a T20 member has RM278,941 in savings, with a median of RM170,266.
The middle 40% (M40), comprising 6.43 million members, holds RM180.23 billion, averaging RM28,032 in savings with a median of RM20,660.
The bottom 40% (B40), equal in membership to the M40, starkly lags with a total savings of just RM11.01 billion, averaging RM1,713 in savings per member, with a dismal median of RM1,063.
This indicates that the the top 20% (T20) of members possess 82.5% of the total savings within the EPF, the middle 20% (M20) account for 16.5%, and the bottom 40% (B40) hold a mere 1% of the EPF’s total savings.
EPF: Gap between different ethnic groups
The data also reveals a significant wealth gap, notably between the ethnic Chinese members, who hold the lion’s share of savings, and other demographic groups.
With 4.37 million ethnic Chinese members, their combined savings stand at RM613.68 billion, starkly contrasting with the Malay members, who, despite having a larger membership of 8.13 million, accumulate a total of RM332 billion in savings.
The Indian members, totaling 1.33 million, have savings amounting to RM89.67 billion.
The average savings for Chinese members hit RM140,285, with a median savings of RM43,595 across all age groups, and RM48,627 for members below 55.
Malay members, on the other hand, average RM40,827 in savings, with median figures significantly lower at RM7,838 across all ages, and RM8,950 for those under 55.
Indian members have an average of RM67,602 in savings, with median savings of RM14,488 across all ages, and RM17,375 for the sub-55 group.
EPF announces dividend rate of 5.5% in 2023
Read also: KWSP Declares 5.50% EPF Dividend Rate For 2023
This marks an increase from the previous year’s rates of 5.35% for conventional and 4.75% for Islamic accounts, highlighting a year of profitable returns amidst glaring wealth disparities.
