With the Employees Provident Fund (EPF) announcing a solid 6.15% dividend for 2025, many retail investors are asking: Can I do better on my own?
The answer is yes—but you have to be selective. With the 10% REIT withholding tax concession ending, 2026 marks a new era where "Net Yield" is king. REITs are now taxed at your individual rate, making them highly attractive for those in lower tax brackets.
The REIT Powerhouse
REITs like Sentral and KIP are currently yielding well above 7.5%. Even after accounting for individual taxes, these outpace the EPF. Their secret? Strategic focus on community retail and logistics—sectors that are booming as the Malaysian economy hits new 7-year highs.
Resilient Consumer & Finance
While we move away from cyclical auto picks like BAuto, MBM Resources remains a dividend heavyweight due to its stake in Perodua. Meanwhile, RHB Bank stands out in the financial sector, offering a yield that dances right on the edge of the EPF rate but with the added potential for capital appreciation as the KLCI trends toward 1,760.
Final Verdict
To truly beat the EPF, aim for a diversified "Basket of Ten." By mixing high-yield REITs (7%+) with stable financial anchors (6%+), you create a cash-flow machine that works harder than a static savings account.