KWASA DAMANSARA, 3 June 2025: The Employees Provident Fund (EPF) recorded a total investment income of RM18.31 billion for the first quarter ended 31 March 2025 (Q1 2025), a 13% decline from RM20.99 billion in the corresponding period in 2024. The total investment income includes RM1.02 billion mark-to-market gains on securities that have not been realised, due to foreign exchange rate fluctuations. In line with the EPF’s policy, these gains will not be distributable as dividends.

EPF Chief Executive Officer Ahmad Zulqarnain Onn said, “Global markets turned volatile early in 2025 on renewed trade frictions and policy uncertainty. Whilst the announcement of tariffs was made by the US administration on 2 April, uncertainties surrounding US trade policies had begun to affect major stock markets throughout the quarter. Despite the moderation of inflationary pressures in many economies, the pace and timing of monetary policy easing differed across regions, dampening risk appetites. Our diversified global portfolio cushioned the impact and kept the EPF on course for long-term value creation.”

During the quarter under review, Equities contributed RM10.81 billion, a 23% decline from RM14.02 billion recorded in Q1 2024. The drop was mainly due to weaker performance across global equity markets and a challenging investment climate. The asset class continued to be the highest contributor, accounting for 59% of total investment income. 

Fixed Income continued to anchor capital preservation, contributing RM5.99 billion or 33% of total investment income. Fixed income, comprising Malaysian Government Securities and Equivalents, Loans and Bonds, continues to fulfil its dual mandate of delivering stable returns and as a counterbalance to equity market fluctuations. This underscores its strategic importance in safeguarding members’ savings across market cycles. 

Real Estate and Infrastructure recorded an income of RM1.08 billion in Q1 2025, while Money Market Instruments generated RM0.43 billion, in line with return expectations for these asset classes.

Of the total investment income, RM15.87 billion was generated for Simpanan Konvensional, and RM2.44 billion for Simpanan Shariah.

As of March 2025, EPF’s total investment assets stood at RM1.26 trillion, with 38% invested internationally. During the period, international investments generated RM8 billion or 44% of the total investment income. 

The EPF’s domestic investments, which account for 62% of total assets, continued to provide long-term income stability through dividends, interests and profits from sukuk. The EPF remains committed to supporting Malaysia’s economic growth by continuing to invest over 70% of its annual allocation in the domestic market. This reflects its role as a long-term investor and aligns with the Government’s Ekonomi MADANI framework. Through the GEAR-uP initiative, the EPF is focused on building investment opportunities in the healthcare sector. This aims to capture long-term growth, address critical system gaps and support healthier retirement for Malaysians.

 

EPF adopts cautious outlook amid heightened global uncertainty
Global economic conditions are expected to remain challenging amid persistent geopolitical tensions and the risk of high tariff and non-tariff barriers between major economies, particularly the United States and China. While some central banks have begun to ease monetary policy, concerns over global political instability, fiscal imbalances, and regional conflicts continue to dampen market sentiment and undermine investor confidence. 
The International Monetary Fund has lowered its global growth forecast for 2025 to 2.8%, down 0.5 percentage point from its January projection. Correspondingly, Malaysia’s real GDP growth forecast for 2025 is expected to be slightly lower than the original forecast of 4.5% – 5.5%, alongside a broader downward revision across the region.

Ahmad Zulqarnain said the downward revisions in global and regional growth forecasts, including Malaysia’s, reflect rising external risks amidst shifting global trade dynamics. 

“In a more challenging and uncertain market environment, the EPF maintains a dynamic and well-diversified portfolio to help safeguard value and manage downside risks. We continue to actively explore investment opportunities across both domestic and international markets to strengthen our portfolio and support long-term, sustainable returns for our members,” he added.

 

Driving operational excellence with focus on longevity for retirement security

Malaysia’s resilient economy continued to support the labour market, with the unemployment rate decreasing to 3.1% in Q1 2025, from 3.3% a year earlier. During the period, the EPF registered 140,111 new members, raising total membership to 16.3 million. Of these, 8.88 million are active members ¹, representing 51.3% of the 17.31 million labour force ². The EPF’s active-to-inactive member ratio remained stable at 54:46 in Q1 2025.

New employer registration reached 19,600 in Q1 2025, increasing total active employers registered with the EPF to 616,558. Total contributions increased by 15.1% to RM33.54 billion, up from RM29.13 billion in Q1 2024 (see Chart 1). Meanwhile, total voluntary contributions increased by 62% to RM7.02 billion, from RM4.33 billion a year earlier. The number of formal sector members contributing above the statutory rate was 10,990 in Q1 2025, compared to 6,771 in the same period last year.

 

Table 1: EPF Q1 2025 Results

 

Table 2: EPF Q1 2025 Members/Employers Registration

 

Chart 1: Total Contributions Received Quarter-on-Quarter

 

 

Issued by
Editorial and Media Relations Unit
Corporate Affairs Department
3 June 2025