KUALA LUMPUR (Aug 14): The Employees Provident Fund (EPF) reported a 22% jump in investment income to RM20.61 billion for the second quarter ended June 30, 2025 (2QFY2025), up from RM16.91 billion a year earlier.
For the first half of 2025, total investment income grew 3% to RM38.92 billion from RM37.90 billion in the same period last year, the pension fund said in a statement.
CEO Ahmad Zulqarnain Onn attributed the performance to the fund’s focus on high-quality assets in key domestic sectors, disciplined asset allocation, and ESG-integrated strategies, which allowed it to seize opportunities while managing risks amid ongoing global uncertainty.
Equities remained the largest contributor in 2QFY2025, delivering RM13.77 billion or 67% of total investment income — up 35% from RM10.23 billion a year earlier. Fixed income instruments, comprising Malaysian Government Securities, equivalents, loans, and bonds, contributed RM6.73 billion or 33%.
Real estate and infrastructure generated RM290 million (1.4%), while money market instruments — mostly non-ringgit denominated — posted a RM180 million loss from foreign exchange translation due to the ringgit’s appreciation against the US dollar.
From the quarter’s total income, RM17.39 billion was allocated to conventional savings and RM3.22 billion to shariah savings.
As at end-June 2025, total investment assets rose 8% year-on-year to RM1.31 trillion, with international holdings accounting for 39%, reflecting improved global equity valuations.
“Nevertheless, we remain watchful of downside risks, such as softening global trade, volatile trade policies, renewed inflationary pressures, and shifting geopolitics,” Ahmad Zulqarnain said. “Our approach will be active vigilance and prudent management to ensure long-term resilience in protecting members’ retirement savings.”
Policy Updates: Foreign Worker Coverage, Account Restructuring
The EPF will intensify outreach to employers and stakeholders ahead of the October 2025 implementation of mandatory contributions for non-Malaysian citizen employees, applicable from the November contribution month.
It also reaffirmed that the planned retirement savings account restructuring under the 13th Malaysia Plan will aim to provide members with a longer-lasting income stream in retirement. The scheme will not affect existing withdrawal rights and will be offered as a voluntary opt-in for current members.
In 1H2025, EPF added 286,194 new members, bringing total membership to 16.4 million, including 8.98 million active members — 51.5% of the national labour force. The active-to-inactive member ratio held steady at 55:45.
New employer registrations rose to 37,402, raising total active employers to 619,662. Voluntary contributions jumped 55% to RM11.68 billion from RM7.55 billion a year ago, while formal sector members contributing above the statutory rate climbed to 34,442 from 19,591 in the same period last year.
