THE Employees Provident Fund (EPF) has recorded an investment income of RM38.92 billion for the six-month period ending 30 June 2025, reflecting a 3 per cent increase from RM37.90 billion in the same period last year.
The total includes RM0.44 billion in mark-to-market gains arising largely from foreign exchange fluctuations, although these will not be distributed as dividends in accordance with EPF policy.
The second quarter proved especially robust, with investment income reaching RM20.61 billion—an increase of 22 per cent from RM16.91 billion in the corresponding quarter of 2024.
This growth was primarily fuelled by equities, which generated RM13.77 billion, marking a 35 per cent surge and accounting for 67 per cent of the total income for the quarter. Fixed income investments, which remain central to capital preservation, contributed RM6.73 billion or 33 per cent.
As at the end of June 2025, the EPF’s total assets under management stood at RM1.31 trillion—an 8 per cent increase year-on-year. International investments comprised 39 per cent of the overall portfolio, generating RM12.92 billion or 63 per cent of investment income in Q2, buoyed by favourable equity valuations in global markets.
Chief Executive Officer Datuk Seri Ahmad Zulqarnain Onn had said: “The EPF’s long-term diversified investment approach continues to deliver resilient outcomes, supported by steady market recovery, strong domestic contributions and a disciplined portfolio management approach.”
He also noted a 5 per cent increase in assets under management, attributing the fund’s performance to its focus on high-quality assets in key domestic sectors and the integration of ESG principles into its investment strategy.
Nonetheless, he cautioned that the global outlook remains uncertain. “Notwithstanding an improved Q2, the EPF remains vigilant of downside risks, including softening global trade, unpredictable trade policies, renewed inflationary pressures and shifting geopolitics.
“Our strategy will be one of active vigilance and prudent management, focusing on our long-term resilience to safeguard our members’ retirement savings against these external headwinds,” he said.
Real estate and infrastructure delivered RM0.29 billion in income during Q2, while money market instruments experienced a RM0.18 billion loss due to the appreciation of the ringgit against the US dollar. Of the total Q2 income, RM17.39 billion was allocated to Simpanan Konvensional and RM3.22 billion to Simpanan Shariah.
The fund’s domestic investment focus continues under the government’s Ekonomi MADANI agenda, with capital channelled into long-term sectors such as healthcare, aged care and infrastructure through the GEAR-uP initiative.
Malaysia’s labour market, meanwhile, remains stable. Unemployment declined to 3.0 per cent as of June 2025. EPF membership grew by 286,194 new members in H1, raising total membership to 16.4 million. Active contributors now comprise 8.98 million, or 51.5 per cent of the national labour force. New employer registrations also rose, bringing the total to 619,662 as of June.
Total contributions increased 13.8 per cent to RM31.21 billion in Q2 2025. Voluntary contributions surged by 55 per cent to RM11.68 billion in the first half. Notably, 34,442 members from the formal sector contributed above the statutory rate, a sharp rise from 19,591 in the same period last year.
The EPF plans to step up engagement with employers ahead of the mandatory contribution rollout for non-Malaysian workers, which takes effect from October 2025 wages. The fund reiterated its support for a seamless transition and full compliance, highlighting the policy’s role in broadening social protection.
The EPF also reaffirmed that the proposed retirement account restructuring under the 13th Malaysia Plan will allow members to receive a sustained income stream during retirement, with existing withdrawal rights preserved and participation offered on a voluntary basis.
While analysts view the improved H1 performance as a positive signal for a potential dividend uplift in 2025, some caution that rising membership and increased contributions could dilute the dividend rate on a per-member basis. Even so, the EPF’s results underscore its ability to navigate economic uncertainties with strategic discipline and long-term focus. - August 18, 2025
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