A total of 42,800 Employees Provident Fund (EPF) members invested a combined RM461 million in unit trust and other approved instruments under the Members' Investment Scheme in the first three months of this year.

Unaudited first quarter (Q1) performance statistics released by the EPF showed that the number and value of withdrawals for investment purposes increased by 12 per cent and 27 per cent respectively as compared to the last quarter (Q4) of 2003.

"The increase, both in number as well as value, is indicative of a strong economy, leading members to opt to invest on their own," said Datuk Azlan Zainol, Chief Executive Officer of the EPF.

A total of 187,600 withdrawals valued at approximately RM3.6 billion was made in Q1 2004. The breakdown is as follow, Age 50 (22,100 withdrawals at RM457 million); Age 55 (30,100 withdrawals at RM1.4 billion); Housing (51,200 withdrawals at RM656 million); Investment (42,800 withdrawals at RM461 million); Education (5,700 withdrawals at RM37 million); Pensionable Employees and Optional Retirees (26,900 withdrawals at RM326 million) and Others (8,800 withdrawals at RM211 million).

In Q4 2003, there was a total of 168,400 withdrawals with a value of RM2.7 billion.

Despite the increase in withdrawals, the EPF's cash flow remained very healthy, with contributions for the quarter reaching RM5.9 billion, an increase of 16 per cent over the RM5.1 billion recorded in the last three months of 2003. The increase can be credited to bonus payments made by employers.

Membership for the quarter under review increased marginally to 10.5 million, and there was a corresponding rise in the number of employers which stood at 359,000.

For the period, the EPF processed and approved over 99 per cent of age 50,55 and housing withdrawal applications within 14 days.

As at March 31, 2004, the EPF had invested RM222.4 billion in various instruments such as Malaysian Government Securities (MGS), Loans and Bonds, Equities, Money Market Instruments and Properties.

These investments earned a gross income of RM2.6 billion for the quarter, with MGS, Equity and Loans and Bonds being the main income generators. MGS contributed RM1.2 billion, Equity RM371 million and Loans and Bonds RM858 million.

About the Employees Provident Fund (EPF)

The EPF is Malaysia's national provident fund which aims to provide financial security for its members' retirement purposes. The fund is committed to preserving and growing the savings of its members in a prudent manner in accordance with best practices in investments and corporate conduct. Its services are also being improved with focus on people skills, processes and procedures.

The EPF will continue to play a catalytic role in the nation's development, consistent with its position as the largest social security organisation in Malaysia.

Date: 22 June 2004