EPF To Adopt Cautious Stance To Rebuild Members’ Savings, Sustain Growth

Alex Cheong Pui Yin

21st June 2022 - 2 min read

The Employees Provident Fund (EPF) has said that it will adopt a cautious approach in its investments moving forward, as it navigates the downside risks attributed to post-Covid-19 recovery and the Russia-Ukraine war. This came as the provident fund announced that its total investment income for the first quarter of 2022 (1Q22) fell by 17.83% year-on-year, from RM19.29 billion to RM15.85 billion.

According to the chief executive officer of the EPF, Datuk Seri Amir Hamzah Azizan, both the equity and bond markets will likely still be negatively affected by global inflationary concerns and supply chain disruptions. Adding to this tumult is the move by major central banks around the world to tighten their monetary policies.

“The EPF would continue to rebalance the fund’s positions in stocks that are fundamentally strong but undervalued,” said Datuk Seri Amir Hamzah, adding that the provident fund will be guided by its Strategic Asset Allocation strategy to endure the current instabilities and pursue long-term goals.

On top of that, Datuk Seri Amir Hamzah also emphasised that going forward, the EPF will be focused in helping members to rebuild their retirement savings, especially now that Malaysia has transitioned into the endemic phase of Covid-19.

“In addition to prioritising members’ interests and future wellbeing, the EPF also needs to ensure it is able to perform going forward. Any further withdrawals would financially impact the EPF and weaken the fund’s current portfolio position and capacity to ensure sustainable returns,” said Datuk Seri Amir Hamzah, referring to the four pandemic-related withdrawal facilities that had been allowed during 2020 and 2021: i-Lestari, i-Sinar, i-Citra, and the Special Withdrawal.

Ultimately, Datuk Seri Amir Hamzah said that the EPF’s fund performance and support of the domestic capital market are central to Malaysia’s economic success. This is given its role as one of the crucial pillars in the country’s socio-economic and social security framework.

(Source: Malay Mail)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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