The Employees Provident Fund (EPF) recorded RM18.31 billion in investment income for the first quarter ended 31 March 2025, marking a 13% decline from RM20.99 billion in the same period last year. The figure includes RM1.02 billion in unrealised mark-to-market gains on foreign exchange fluctuations, which, in line with EPF policy, will not be distributed as dividends.

EPF Chief Executive Officer, Ahmad Zulqarnain Onn, attributed the lower income to renewed global market volatility early in the year, driven by policy uncertainty and trade tensions. “Despite the moderation of inflationary pressures in many economies, the pace and timing of monetary policy easing differed across regions, dampening risk appetites. Our diversified global portfolio cushioned the impact and kept the EPF on course for long-term value creation,” he said in a statement.

The equities portfolio remained the largest contributor to investment income, generating RM10.81 billion, though this represented a 23% drop from RM14.02 billion in the same quarter of 2024. The EPF noted that weaker equity performance worldwide and a difficult investment climate weighed on returns.

Fixed income investments contributed RM5.99 billion, or 33% of the total, continuing to play a stabilising role in the fund’s portfolio. These assets, which include Malaysian Government securities, loans, and bonds, remain key in preserving capital while offering steady returns.

Real estate and infrastructure generated RM1.08 billion, and money market instruments brought in RM0.43 billion during the quarter, in line with expectations for these asset classes.

From the total investment income, RM15.87 billion was allocated to conventional savings, while RM2.44 billion went towards shariah savings. As at March 2025, the EPF’s investment assets stood at RM1.26 trillion, with 38% held in international markets. These foreign investments accounted for RM8 billion, or 44% of total investment income for the quarter.

Domestic investments made up 62% of the EPF’s asset base, and continued to provide income stability through dividends, interest, and profits from sukuk. The fund reaffirmed its commitment to Malaysia’s economic growth, noting that over 70% of its annual investment allocation remains targeted at the domestic market.

Ahmad Zulqarnain noted that the EPF is navigating an increasingly complex and uncertain global landscape by maintaining a flexible, diversified investment approach. “We continue to actively explore investment opportunities across both domestic and international markets to strengthen our portfolio and support long-term, sustainable returns for our members,” he said.

Meanwhile, membership continued to grow during the quarter, with 140,111 new sign-ups pushing total membership to 16.3 million. Active members stood at 8.88 million, representing 51.3% of Malaysia’s 17.31 million-strong labour force. The active-to-inactive member ratio remained steady at 54:46.

Employer registration also rose, with 19,600 new employers joining the EPF in the first quarter, bringing the total number of active registered employers to 616,558. Total contributions increased by 15.1% year-on-year to RM33.54 billion, while voluntary contributions surged 62% to RM7.02 billion. The number of formal sector members contributing above the statutory rate rose to 10,990 from 6,771 in the same period last year.

(Source: Bernama) 

• TAGS:
• Employees Provident Fund
• EPF
• Fixed Income Investments
• Global Market Volatility
• Income
• Investment