KWASA DAMANSARA, 11 November 2024: The Employees Provident Fund (EPF) recorded a total investment income of RM57.57 billion for the nine months ended 30 September 2024 (9M 2024), a 20% increase from RM47.86 billion in the corresponding period in 2023. For the third quarter (Q3 2024) ended 30 September 2024, the EPF’s investment income was RM19.67 billion, an increase of RM5 billion from RM14.67 billion in the corresponding period in 2023.

EPF Chief Executive Officer Ahmad Zulqarnain Onn stated, “The EPF's robust performance reflects its investment strategy of maintaining a highly diversified portfolio across major asset classes. Malaysia’s GDP grew by a solid 5.9% year-on-year in Q2, while the FBM KLCI closed at 1648 at the end of Q3, returning 13% year-to-date. Investor sentiment remains positive, bolstered by the performance of Malaysian companies, economic policies, and fiscal reforms. Global markets were generally positive during the quarter, driven by the start of the interest rate easing cycle as the US Federal Reserve reduced interest rates by 50 basis points in September.

“The highly anticipated reduction in the U.S. interest rates drove market sentiment and gains across multiple sectors, including REITs, utilities and financials, all of which positively impacted the EPF’s investment portfolio. China’s real GDP growth was recorded at 4.6% year-on-year, slightly down from 4.7% in the previous quarter. Nonetheless, risks remain in the global outlook such as the trajectory and pace of interest rate reductions, persistent and escalating geopolitical tensions particularly in the Middle East, and potential higher import tariffs into the U.S. with the election of Donald Trump last week,” he added.

Equity investments continued to be a substantial income contributor in Q3 2024, generating RM18.32 billion. This increase, compared to RM9.17 billion in Q3 2023, reflects EPF’s proactive approach in realising gains amidst market volatility, alongside the positive momentum in equity markets.

Fixed Income, which plays a crucial role in capital preservation, has been the anchor for the EPF by providing a steady income stream and mitigating the impact of short-term market volatility. This asset class, comprising Malaysian Government Securities and Equivalents, as well as Loans and Bonds, contributed 33% or RM6.51 billion, to EPF’s total investment income for Q3 2024. 

Real Estate and Infrastructure recorded a gain of RM0.82 billion during the quarter on a constant currency basis. As majority of Real Estate and Infrastructure investments as well as Money Market Instruments are denominated in non-Ringgit currencies, and with the recent strengthening of the Ringgit against the US Dollar in Q3 2024, the asset classes experienced a loss of RM3.71 billion and RM1.45 billion respectively after foreign exchange translation¹. These positions are temporary, reflecting current currency movements. International money markets are highly sensitive to short-term currency fluctuations, leading to translation losses during periods of currency appreciation. The EPF’s investments in real estate and infrastructure have a longer-term horizon where currency movements have less impact on overall actual returns.

As of September 2024, the EPF’s investment assets totaled RM1,222.34 billion, with 62.2% and 37.8% allocated to Malaysian and international investments. In the Q3 2024, international investments contributed RM10.50 billion, accounting for 53% of total investment income.

Of the total investment income, RM48.02 billion was generated for Simpanan Konvensional, and RM9.55 billion for Simpanan Shariah.

 

Strong labour market growth drives increase in EPF membership and contributions
Malaysia’s labour market has demonstrated robust health, with employment rising by 1.9% year-on-year and the unemployment rate remaining low at 3.2%. Additionally, the labour force participation rate has remained stable at 70.5%. This positive labour market environment has contributed to an increase in the EPF's new membership, as more individuals join the workforce and seek to secure their financial future via the EPF. 

During the first three quarters of 2024, the EPF saw 364,364 new member registrations, bringing total membership to 16.1 million. A total of 8.69 million are active members², which now represent 50.4% of Malaysia’s 17.24 million labour force³.

New employer registration recorded during the period was 55,717, bringing the total number of active employers registered with the EPF to 612,889. Total contributions received increased from RM23.1 billion in Q3 2023 to RM25.2 billion in Q3 2024.

 

 

The EPF’s i-Saraan scheme is experiencing significant growth in enhancing retirement income security for Malaysians in the informal sector, as well as for those without fixed incomes. Throughout the first half of 2024, i-Saraan recorded total contributions of RM1.61 billion from 330,196 members, reflecting a 103% increase from RM789.3 million and a 56% increase from 211,361 members in the corresponding period in 2023.

In 9M 2024, the EPF recorded a 29% growth in the number of voluntary contributors to 938,695 from 730,066 in 9M 2023. Total voluntary contribution was RM10.37 billion, an increase of 72% from the RM6.03 billion accumulated in the corresponding period last year. Meanwhile, the number of formal sector members who opted to contribute more than the statutory rate⁴ was 65,695 in 9M 2024, compared to 55,946 in 9M 2023.

Ahmad Zulqarnain welcomed the Government’s announcement to enhance the i-Saraan programme as announced during the Budget 2025 on 18 October 2024. This enhancement includes an increase in the matching incentive from 15% to 20%, up to a maximum of RM500 per year and a lifetime limit of RM5,000 per individual, set to take effect on 1 January 2025. This significantly bolsters the retirement income security of Malaysians as emphasised in the Ekonomi MADANI framework.

“Enhancing the i-Saraan programme aligns perfectly with the EPF's purpose of building a better retirement future for Malaysians. By increasing the matching incentive, we are reinforcing our commitment to fostering a culture of savings and empowering Malaysians, particularly those in the informal and gig sectors, to secure their financial futures. Our investment mandate and strategy are designed to support this initiative, as we continue to seek sustainable returns that benefit our members while contributing to the nation's economic resilience,” added Ahmad Zulqarnain.

 

 

TABLE 1: EPF Q3 2024 Results

Portfolio	Asset % of Total Investment Asset	Total Investment Income (RM billion)	As % of income
Equities	44%	18.32	93%
Fixed Income Instruments*	47%	6.51	33%
Money Market Instruments	6%	(3.71)**	(19%)
Real Estate and Infrastructure	3%	(1.45)**	(7%)
Total	100%	19.67	100%

 

* Contributions from Malaysian Government Securities & Equivalent, Loans and Bonds
** Losses arising from FX translation resultant from appreciation of Ringgit Malaysia were RM4.53 billion and RM1.92 billion for Real Estate and Infrastructure, and Money Market Instruments respectively.

 

 

TABLE 2: EPF Q3 2024 MEMBERS / EMPLOYERS REGISTRATION

Indicator	Q3 2023 (as at Sept 2023)	Q3 2024 (as at Sept 2024)	Growth (Q3 2023 and Q3 2024)
1. Members
Total members	15,992,971	16,142,246	0.93%
Active members	8,527,203	8,687,281	1.88%
New member registrations	365,519	364,364	-0.32%
2. Employers
Total employers	603,326	612,889	1.59%
New employer registrations	63,902	55,717	-12.80%

 

Issued by Editorial and Media Relations Unit
Corporate Affairs Department
11 November 2024

 

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^{1. The Ringgit strengthened against the US Dollar during the third quarter from 4.72 to 4.12↩}

^{2. Active members refer to members who contributed at least once in the last 12 months↩}

^{3. Labour Force Report, September 2024; Department of Statistics Malaysia, report released on 8 November 2024↩}

^{4. 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)↩}