KWASA DAMANSARA, 13 August 2024: The Employees Provident Fund (EPF) recorded a total distributable income of RM36.70 billion for the six months ended 30 June 2024 (1H 2024), +29% increase from RM28.40 billion in the corresponding period in 2023. The distributable income does not include mark-to-market (MTM) gains of securities that have not been realised.

The EPF’s total distributable income for the second quarter (Q2 2024) after write-downs was RM17.50 billion, +25% increase from RM13.98 billion in the same quarter last year.

EPF Chief Executive Officer, Ahmad Zulqarnain Onn said, “Favourable market conditions in Malaysia and internationally contributed to the 29% growth in distributable income in 1H 2024, while assets under management grew to RM1.21 trillion. The Malaysian market has benefited from increasing investor interest in growth oriented policies and fiscal reforms. International markets such as the US benefited from continued solid macroeconomic conditions, declining inflation and anticipation of the beginning of an interest rate reduction cycle. 

“Despite relatively calm market conditions, risks persists as illustrated in the recent sell-down in global markets and sharp increases in volatility caused by market participants unwinding some concentrated and crowded positions. As a long-term investor, the EPF will continue with its strategy of constructing a highly diversified portfolio driven by its strategic asset allocation.”

During the quarter under review, Equity investments continued to be the main contributor of income for Q2 2024 at RM10.75 billion after write downs, accounting for 61% of the total distributable income in the quarter under review.  Better equity market performance, both domestically and in the global developed markets, drove income growth compared to the RM7.84 billion recorded in Q2 2023.

Write-downs for the period were marginal at RM0.69 billion, due to active portfolio management by the fund managers and overall better equity market performance.

Fixed Income, continued to provide a steady stream of income, mitigating the impact from short-term market volatility and providing stability for the EPF’s overall income. This asset class, comprising Malaysian Government Securities and Equivalents, as well as Loans and Bonds, contributed 33%, or RM5.72 billion, to EPF’s total distributable income for Q2 2024.

Real Estate and Infrastructure registered an income of RM0.50 billion, while Money Market Instruments generated RM0.53 billion, in line with the prevailing interest and profit rates.

As at 30 June 2024, investment assets stood at RM1,211.53 billion, of which 38% was invested in overseas investments. In the second quarter, the EPF’s overseas investments generated RM8.64 billion or 49% of the total distributable income recorded.

The EPF allocated more than 80% of its new investment annual allocation to the domestic market, and remains dedicated to supporting and contributing towards achieving the goals outlined in the Ekonomi MADANI framework. 

Of the total distributable income, RM31.34 billion was generated for Simpanan Konvensional and RM5.36 billion for Simpanan Shariah.

Capitalising on domestic growth projections while monitoring global uncertainties
Ahmad Zulqarnain said the strong performance of the domestic economy reflects Malaysia’s resilience and growth potential, driven by a healthy labour market, favourable government policies and the global tech upcycle. 

“Malaysia’s economic outlook remains positive. Bank Negara Malaysia’s forecast of full-year growth between 4% and 5%, amid moderate inflation averaging between 2% and 3.5%, is supportive of a positive investment climate,” he added.

On the global economic landscape, Ahmad Zulqarnain said growth is projected to remain stable in 2024, with more central banks expected to begin easing monetary policy in the second half of the year as inflation continues to ease. However, he said the EPF remains vigilant as the outlook remains weighed down by risks such as persistent inflation, a sharper-than-expected growth slowdown, uncertainty surrounding the US election and economic policies, China’s struggling property sector and weak economic recovery, and ongoing geopolitical tensions.

Positive labour market expansion boosts EPF’s membership, contributions growth
Malaysia’s resilient labour market led to a drop in unemployment rate from 3.5% in Q2 2023 to 3.3% in Q2 2024. During 1H 2024, the EPF saw 235,032 new member registrations, bringing total membership to 16.0 million. A total of 8.6 million are active members¹, which now represent 50% of Malaysia’s 17.15 million labour force² . 

New employer registration recorded during the period was 37,284, bringing the total number of active employers registered with the EPF to 610,357. Total contributions received increased from RM50.48 billion in 1H 2023 to RM57.35 billion in 1H 2024 (Refer Chart 1).

The EPF’s i-Saraan scheme continues to make substantial headway in providing retirement income security for Malaysians in the informal and gig sectors, as well as those without fixed incomes. Throughout the first half of 2024, i-Saraan recorded total contributions of RM1.61 billion from 330,196 contributors, reflecting a 103% increase from RM789.3 million and a 56% increase from 211,361 contributors in the corresponding period in 2023.

Ahmad Zulqarnain said the EPF’s dedicated outreach efforts and ongoing campaigns to ramp up members’ savings have significantly enhanced participation in the i-Saraan and voluntary contribution programmes.

In 1H 2024, the EPF recorded a 39% growth in the number of voluntary contributors to 742,556 from 535,307 in 1H 2023. Total voluntary contributions was RM7.51 billion in 1H 2024, an increase of 91% from the RM3.93 billion accumulated in the corresponding period last year. Meanwhile, the number of formal sector members who opted to contribute more than the statutory rate³  was 27,121 in 1H 2024, compared to 38,893 in 1H 2023.

“By extending its support to Malaysians as young as 14 years old, the EPF is resolute in its purpose of building retirement income security and uplifting future generations. This commitment aligns with the “Raise the Floor” initiative outlined in the Ekonomi MADANI framework, aiming to enhance the wellbeing of Malaysians,” said Ahmad Zulqarnain.

“In parallel, the EPF’s strategic investments, guided by its Strategic Asset Allocation (SAA) and supported by proactive investment stewardship, are designed to deliver positive societal and environmental impacts. This approach ensures that all stakeholders’ best interests are considered while EPF continues to maximise its portfolio-level risk-adjusted returns.”

*Contributions from Malaysian Government Securities & Equivalent, Loans and Bonds.

¹ Active members refer to members who contributed at least once in the last 12 months
² Labour Force Report, June 2024; Department of Statistics Malaysia, report released on 9 August 2024
³ An employee and employer can choose to contribute at a higher rate than statutory rate of 11% (employee’s share) or 12% / 13% (employer’s share)

Issued by the EPF Media Desk 
Corporate Affairs Department
13 August 2024