{
  "id": 1830695,
  "title": "Tiered EPF dividends could backfire, experts caution [WATCH]",
  "url": "https://urgent.news/2026/08/18/tiered-epf-dividends-could-backfire-experts-caution-watch",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T23:55:39.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1514169/tiered-epf-dividends-could-backfire-experts-caution-watch"
  },
  "original_language": "en",
  "account": "Industry experts warn that introducing tiered EPF dividends may weaken the fund's investment scale, prompt early withdrawals and be seen as a penalty for long-term contributors with larger balances. Dr Ong Kian Ming, an adjunct professor from Taylor's University, believes that such a model may erode trust in the EPF. A tiered dividend system could lead to more early withdrawals among higher earners, he added, noting that the EPF may also see reduced self-contributions. Khazanah Research Institute (KRI) proposed a progressive dividend model as part of broader retirement ecosystem reforms, including extending the retirement age and deepening progressive contributions. Dr Mohamad Idham Md Razak, from Universiti Teknologi Mara, echoed these views, emphasizing that a tiered structure could unintentionally encourage withdrawals or reduce voluntary contributions, particularly for those with larger balances. Aimi Zulhazmi Abdul Rashid, an economic analyst at Universiti Universiti Teknologi Mara Business School, suggested that instead of tiered dividends, a single base dividend for all members with a targeted top-up or bonus dividend for accounts below a certain threshold would be more effective.",
  "summary": "KUALA LUMPUR: A tiered dividend structure for the Employees Provident Fund (EPF) may weaken the fund’s investment scale, risk early withdrawals and be deemed as a penalty for long-term members with larger balances, said industry experts.",
  "key_points": [
    "Tiered EPF dividends may weaken fund's investment scale",
    "Early withdrawals likely for higher earners with larger balances",
    "Progressive dividend model proposed by KRI experts"
  ],
  "editors_take": "Introducing tiered EPF dividends may erode trust, encourage early withdrawals, and reduce self-contributions, particularly among higher earners with larger balances, experts warn.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}