KUALA LUMPUR (Aug 14): The Employees Provident Fund (EPF) said on Thursday its investment income for the second quarter ended June 30, 2025 (2QFY2025) rose 22% to RM20.61 billion from RM16.91 billion a year earlier.
This lifted total investment income for the January-June period to RM38.92 billion, up 3% from RM37.90 billion in the same period last year, the pension fund said in a statement.
Chief executive officer Ahmad Zulqarnain Onn said the fund’s focus on high-quality assets, particularly in key domestic sectors, alongside disciplined asset allocation and ESG-integrated strategies, enabled it to capture opportunities while managing risks amid ongoing global uncertainty.
For 2QFY2025, equities remained its largest contributor, generating RM13.77 billion or 67% of total investment income, up 35% from RM10.23 billion in 2QFY2024. Fixed income instruments — comprising Malaysian Government Securities and equivalents, as well as loans and bonds — contributed 33% or RM6.73 billion.
Real estate and infrastructure accounted for 1.4% or RM290 million, while money market instruments — largely denominated in non-ringgit currencies — posted a RM180 million loss after foreign exchange translation, due to the ringgit’s appreciation against the US dollar in the quarter.
Of its overall investment income for the quarter, RM17.39 billion was allocated to conventional savings and RM3.22 billion to shariah savings.
As at end-June 2025, EPF’s total investment assets stood at RM1.31 trillion, up 8% year-on-year. International investments made up 39% of total assets, with the increase partly reflecting improved valuations in global equity markets.
“Notwithstanding this, the EPF remains vigilant of downside risks, including softening global trade, unpredictable trade policies, renewed inflationary pressures and shifting geopolitics,” said Ahmad Zulqarnain. “Our strategy will be one of active vigilance and prudent management, focusing on long-term resilience to safeguard members’ retirement savings against these external headwinds.”
Expanding coverage to foreign workers, account restructuring
In the coming months, the EPF said it will step up engagement with employers and stakeholders to ensure smooth implementation of mandatory contributions for non-Malaysian citizen employees. The expanded coverage takes effect with October 2025 wages, for the contribution month of November 2025.
The EPF also reaffirmed that the proposed retirement savings account restructuring — as announced under the 13th Malaysia Plan — is aimed at helping members’ savings last longer in retirement through a steady income stream. The plan will not affect existing withdrawal rights and will be offered on a voluntary opt-in basis for current members.
During 1H2025, the EPF registered 286,194 new members, bringing total membership to 16.4 million. Of these, 8.98 million are active members, representing 51.5% of the 17.43 million labour force as at June 2025. The active-to-inactive member ratio remained stable at 55:45.
New employer registrations rose to 37,402, lifting total active employers registered with the EPF to 619,662 as at June 2025.
Voluntary contributions jumped 55% to RM11.68 billion in 1H2025 from RM7.55 billion a year earlier.
The number of formal sector members contributing above the statutory rate climbed to 34,442 from 19,591 in the same period last year.
– The Edge Malaysia