THE Employees Provident Fund (EPF) reported an investment income of RM38.92 billion for the first half of 2025, reflecting a 3 percent increase from RM37.90 billion in the same period last year.
The total income includes unrealised mark-to-market gains of RM0.44 billion, largely due to foreign exchange fluctuations. In line with EPF policy, these gains will not be distributed as dividends.
Chief Executive Officer Ahmad Zulqarnain Onn said the EPF’s diversified, long-term investment strategy continued to yield resilient performance, supported by steady market recovery, strong domestic fundamentals and disciplined portfolio management.
“The rise in contributions and income has driven a 5 percent increase in total investment assets. Our focus on high-quality assets, particularly in key domestic sectors, disciplined asset allocation, and ESG integration strategies enables us to seize opportunities while managing risk in an unpredictable global landscape,” he said in a statement.
For the second quarter of 2025 alone, EPF recorded RM20.61 billion in investment income, a 22 percent increase from RM16.91 billion in Q2 2024.
Despite the positive quarterly performance, Ahmad Zulqarnain noted that the fund remains cautious amid risks from slow global trade, uncertain policy environments, inflationary pressures and geopolitical shifts.
“Our strategy is executed through vigilant, proactive measures with prudent management, focused on long-term resilience to protect members’ retirement savings from external challenges,” he said.
Equities remained the largest contributor to investment income during the quarter, generating RM13.77 billion, a 35 percent increase from RM10.23 billion in Q2 2024. This accounted for 67 percent of the total investment income.
Fixed Income instruments generated RM6.73 billion or 33 percent of total investment income, continuing their role in capital preservation. This category includes Malaysian Government Securities and similarly rated bonds, which provide stable returns and reduce the impact of equity market volatility.
Real Estate and Infrastructure contributed RM0.29 billion during the quarter, while Money Market Instruments recorded a currency-exchange-related loss of RM0.18 billion due to a stronger Ringgit against the US Dollar.
Of the total Q2 2025 investment income, RM17.39 billion was allocated to Conventional Savings and RM3.22 billion to Shariah Savings.
As of 30 June 2025, total investment assets stood at RM1.31 trillion, up 8 percent year-on-year. International investments made up 39 percent of the total assets, driven in part by improved valuations in global equity markets. These overseas investments contributed RM12.92 billion, or 63 percent of Q2 income.
Ahmad Zulqarnain reaffirmed EPF’s commitment to national development through continued domestic investment in key sectors aligned with the MADANI Economic Agenda.
“Under the GEAR-uP initiative, EPF is focusing on healthcare, ageing population support, and infrastructure,” he added.
Malaysia’s labour market remains resilient, bolstered by sound government policies, macroeconomic stability, and investment in human capital. The national unemployment rate dropped by 0.3 percentage points to 3.0 percent as of June 2025, according to the Department of Statistics.
EPF registered 286,194 new members in the first half of 2025, bringing total membership to 16.4 million. Of this, 8.98 million were active members, accounting for 51.5 percent of the labour force. The active-to-inactive member ratio remained stable at 55:45 during the period.
New employer registrations totalled 37,402, raising the number of active registered employers to 619,662 as of June 2025.
Quarterly contributions rose 13.8 percent to RM31.21 billion from RM27.42 billion in Q2 2024. Voluntary contributions surged 55 percent to RM11.68 billion in the first half of 2025, up from RM7.55 billion a year earlier.
The number of formal sector members contributing above the statutory rate rose to 34,442 in 1H 2025, from 19,591 during the same period last year.
Looking ahead, Ahmad Zulqarnain said EPF will intensify engagement with employers and stakeholders to ensure a smooth implementation of the new mandatory contribution policy for non-Malaysian workers, beginning with October 2025 salaries (November 2025 contributions).
“This policy is a vital step towards strengthening social protection and promoting equity in the labour market. EPF remains committed to ensuring a smooth transition and full compliance,” he said.
The EPF also reiterated that the proposed restructuring of retirement savings accounts, as outlined in the 13th Malaysia Plan, aims to help members’ savings last longer post-retirement by providing a stable income stream. The proposal involves no change to existing withdrawal rights and will remain voluntary for current members. - August 14, 2025
