KWASA DAMANSARA, 14 August 2025: The Employees Provident Fund (EPF) recorded a total investment income of RM38.92 billion for the first six months ended 30 June 2025 (1H 2025), a 3% increase from RM37.90 billion in the corresponding period in 2024. The total investment income includes RM0.44 billion mark-to-market gains on securities that have not been realised, mainly due to foreign exchange rate fluctuations. In line with the EPF’s policy, these gains will not be distributable as dividends. 

EPF’s total investment income for the second quarter (Q2 2025) was RM20.61 billion, representing a 22% increase from RM16.91 billion in the same quarter last year.

EPF Chief Executive Officer Ahmad Zulqarnain Onn said, “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. 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.”

“Notwithstanding an improved Q2, 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.

During the quarter under review, Equities remained the largest contributor to investment income, generating RM13.77 billion, a 35% increase, compared to RM10.23 billion in Q2 2024. The strong recovery in the global equity markets during the quarter provided opportunities for EPF fund managers to capitalise on the gains and contributed to the income growth. Equities accounted for 67% of the total investment income for the quarter.

Fixed Income continued its role in capital preservation, generating RM6.73 billion or 33% of the total investment income for the quarter. This asset class, which comprises Malaysian Government Securities and Equivalents, as well as Loans and Bonds, continued to provide stable returns and helped cushion the impact of volatility in the equity markets. 

Real Estate and Infrastructure recorded an income of RM0.29 billion in Q2 2025. Given the EPF’s long-term investment horizon in this asset class, currency movements have minimal impact on actual returns over time. Similarly, Money Market Instruments, which are also largely denominated in non-Ringgit currencies, were affected by the Ringgit’s appreciation against the US Dollar in Q2 2025, resulting in a RM0.18 billion loss after foreign exchange translation. 

Of the total investment income for Q2 2025, RM17.39 billion was generated for Simpanan Konvensional and RM3.22 billion for Simpanan Shariah.

As of 30 June 2025, total investment assets stood at RM1.31 trillion, representing an 8% year-on-year growth. International investments accounted for 39%, with the increase partly reflecting improved valuations in global equity markets. During Q2 2025, international investments generated RM12.92 billion or 63% of the total investment income. 

In line with its commitment to nation-building, the EPF maintained a strong domestic investment focus, channelling investments towards sectors critical to Malaysia’s long-term growth under the Ekonomi MADANI agenda. Through the GEAR-uP initiative, the EPF is focused on healthcare, aged care and infrastructure. 

Expanding coverage for a more inclusive labour market

Malaysia’s labour market is expected to continue to remain resilient in the next quarters, supported by sound government policies, macroeconomic stability, and investments in human capital. The unemployment rate declined by 0.3 percentage points to 3.0% in June 2025 as compared to a year earlier, according to the Department of Statistics Malaysia. During 1H 2025, 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 1H 2025.

New employer registrations reached 37,402, increasing total active employers registered with the EPF to 619,662 as at June 2025. On a quarterly basis, total contributions increased by 13.8% to RM31.21 billion, from RM27.42 billion in Q2 2024 (see Chart 1). 

Voluntary contributions increased by 55% to RM11.68 billion in 1H 2025, from RM7.55 billion a year earlier. For the first six months, the number of formal sector members contributing above the statutory rate was 34,442, compared to 19,591 in the same period last year .

In the months ahead, the EPF will step up engagement with employers and key stakeholders to ensure smooth implementation of mandatory contributions for non-Malaysian citizen employees. This policy represents a significant move towards strengthening social protection and promoting greater equity in the labour market. The EPF remains committed to supporting a seamless transition and full compliance as the expanded coverage takes effect with October 2025 wages, for the contribution month of November 2025.

The EPF also reaffirms that the proposed retirement savings account restructuring, as announced under the 13th Malaysia Plan, is intended to help members’ savings last longer in retirement through a steady income stream, with no change to existing withdrawal rights and a voluntary opt‑in for current members.

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Table 1: EPF Q2 2025 Results

 

Table 2: EPF 1H 2025 Members/Employers Registration

 

Chart 1: Total Contributions Received Quarter-on-Quarter

 

 

Issued by
Editorial and Media Relations Unit
Corporate Affairs Department
14 August 2025