EPF’s total investment income climbs 22% to RM20.61bil in 2Q

KUALA LUMPUR: The Employees Provident Fund (EPF) recorded a total investment income of RM20.61bil in the second quarter ended June 30, 2025, which was a 22% increase from RM16.91bil in the same quarter in 2024.

The latest quarter brought the pension fund’s six-month investment income to RM38.92bil, 3% more than RM37.9bil in the same period in 2024, it reported in a statement.

The EPF’s assets grew 8% year-on-year to RM1.31 trillion as at June 30, 2025 with international investments accounting for 39% of the assets, partly owing to improved valuations in global equity markets.

“The EPF’s long-term diversified investment approach continues to deliver resilient outcomes with our first-half income recording an increase supported by steady market recovery, strong domestic contributions, and a disciplined portfolio management approach,” said CEO Ahmad Zulqarnain Onn.

“The increase in contributions and income led to a 5% increase in our assets under management. Our emphasis on high-quality assets, particularly in key domestic sectors, alongside disciplined asset allocation and ESG-integrated strategies, enabled us to capture opportunities while managing risks amid ongoing global uncertainty.”

On its sources of investment income, international investments generated a quarterly income of RM12.92bil or 63% of the total investment income in 2Q25.

The EPF said equities contributed RM13.77bil to the investment income, a 35% increase over RM10.23bil in 2Q24.

The equities contribution accounted for 67% of the total investment income as EPF fund managers capitalised on global equity markets making a strong recovery, it said.

The EPF’s fixed income investments – comprising Malaysian government securities and equivalents as well as loans and bonds – generated RM6.73bil or 33% of the total investment income in 2Q25.

According to the EPF, this asset class is meant for capital preservation as it provides stable returns and helps to cushion the impact of volatility in equity markets.

Meanwhile, real estate and infrastructure registered an income of RM290mil during the quarter while money market instruments made a RM180mil loss after foreign exchange translation due to the ringgit’s appreciation against the US dollar.

Ahmad Zulqarnain said 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 added.

On the outlook of the labour market, the EPF said it is expected to remain resilient in the coming quarters, supported by sound government policies, macroeconomic stability, and investments in human capital.

In 1H25, the EPF registered 286,194 new members, raising 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 of June 2025.

The EPF’s active-to-inactive member ratio remained stable at 55:45 in 1H25.