PETALING JAYA: The Employees Provident Fund (EPF) recorded a total investment income of RM18.31 billion for the first quarter ended March 31, 2025 (Q1’25), a 13% decline from RM20.99 billion in the corresponding period in 2024.
The total investment income includes RM1.02 billion mark-to-market gains on securities that have not been realised, due to foreign exchange rate fluctuations. In line with the EPF’s policy, these gains will not be distributable as dividends.
During the quarter under review, equities contributed RM10.81 billion, a 23% decline from RM14.02 billion in Q1’24. The drop was mainly due to weaker performance across global equity markets and a challenging investment climate. The asset class continued to be the highest contributor, accounting for 59% of total investment income.
Fixed Income continued to anchor capital preservation, contributing RM5.99 billion or 33% of total investment income. Fixed income, comprising Malaysian Government Securities and equivalents, loans and bonds, continues to fulfil its dual mandate of delivering stable returns and as a counterbalance to equity market fluctuations. This underscores its strategic importance in safeguarding members’ savings across market cycles.
Real estate and infrastructure recorded an income of RM1.08 billion in Q1’25, while money market Instruments generated RM430 million, in line with return expectations for these asset classes.
Of the total investment income, RM15.87 billion was generated for Simpanan Konvensional, and RM2.44 billion for Simpanan Shariah.
As of March 2025, the EPF’s total investment assets stood at RM1.26 trillion, with 38% invested internationally. During the period, international investments generated RM8 billion or 44% of the total investment income.
The EPF’s domestic investments, which account for 62% of total assets, continued to provide long-term income stability through dividends, interests and profits from sukuk.
The EPF said in a statement it remains committed to supporting Malaysia’s economic growth by continuing to invest over 70% of its annual allocation in the domestic market. This reflects its role as a long-term investor and aligns with the government’s Madani Economy framework. Through the GEAR-uP initiative, the EPF is focused on building investment opportunities in the healthcare sector. This aims to capture long-term growth, address critical system gaps and support healthier retirement for Malaysians.
EPF CEO Ahmad Zulqarnain Onn said: “In a more challenging and uncertain market environment, the EPF maintains a dynamic and well-diversified portfolio to help safeguard value and manage downside risks. 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.”
