EPF Posts Strong Q2 Growth with RM20.61 Billion Investment Income, Eyes Resilient Future Amid Global Uncertainties

Kuala Lumpur, August 14, 2025 – Malaysia’s Employees Provident Fund (EPF) has demonstrated robust financial performance in the first half of 2025, underscoring the effectiveness of its diversified investment strategy in navigating volatile global markets. The fund reported a total investment income of RM38.92 billion for the six months ended June 30, marking a modest 3% rise from RM37.90 billion in the same period last year. However, the standout figure was the second quarter (Q2) income of RM20.61 billion, a significant 22% jump from RM16.91 billion in Q2 2024, driven primarily by a rebound in equities and steady fixed-income contributions.

This growth propelled EPF’s assets under management to RM1.31 trillion, an 8% year-on-year increase, with international investments comprising 39% of the portfolio and generating 63% of Q2 income (RM12.92 billion). The results reflect a broader market recovery, particularly in global equities, where EPF capitalized on gains to deliver RM13.77 billion—accounting for 67% of Q2 income and a 35% rise from the previous year. Fixed income assets, including government securities and bonds, provided stability with RM6.73 billion (33% of income), while real estate and infrastructure added RM0.29 billion. A minor setback came from money market instruments, which posted a RM0.18 billion loss due to the Ringgit’s appreciation against the US Dollar, highlighting forex sensitivity in non-Ringgit holdings.

Investment Income

The income split between conventional and Shariah-compliant savings—RM17.39 billion for Simpanan Konvensional and RM3.22 billion for Simpanan Shariah—illustrates EPF’s balanced approach to catering to diverse member needs. Notably, the fund emphasized that RM0.44 billion in unrealized mark-to-market gains from forex fluctuations will not be distributed as dividends, aligning with its conservative policy to prioritize long-term stability.

EPF’s performance is set against a resilient Malaysian labor market, with unemployment dropping to 3.0% in June 2025. Membership expanded to 16.4 million, including 286,194 new registrants in the first half, while active members reached 8.98 million (51.5% of the labor force). Contributions surged 13.8% quarter-on-quarter to RM31.21 billion, bolstered by a 55% rise in voluntary contributions to RM11.68 billion, signaling growing member confidence in retirement planning. Employer registrations also grew, reaching 619,662 active employers.

Looking ahead, EPF is gearing up for key policy shifts, including mandatory contributions for non-Malaysian employees starting with October 2025 wages, aimed at enhancing social protection and labor equity. The fund also reiterated its support for the proposed retirement savings restructuring under the 13th Malaysia Plan, which promises steady post-retirement income without altering withdrawal rights—offered as a voluntary opt-in for existing members.

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