EPF shifts capital into private markets to navigate global volatility
THE Employees Provident Fund (EPF) is focusing its investments in private markets and resilient sectors to maintain sustainable returns amid global financial uncertainty.
Deputy Finance Minister Lim Hui Ying said this includes selective redeployment into asset classes such as private equity, real estate and infrastructure — areas with strong long-term growth potential.
She was responding to a question from Pagoh MP Tan Sri Muhyiddin Yassin (Perikatan Nasional [PN]-Pagoh) on EPF's asset reallocation strategy in light of market volatility and declining returns.
Lim said EPF applies a disciplined investment strategy guided by its Strategic Asset Allocation (SAA) framework, supported by a dynamic portfolio rebalancing mechanism and comprehensive risk management.
'EPF adopts a disciplined investment strategy based on SAA, with optimal fund distribution across various asset classes, geographies, mandates and strategies, taking into account predetermined risk tolerance limits,' she told the Dewan Rakyat today.
Lim added that the strategy ensures the fund can respond proactively to market shifts while maintaining controlled risk exposure.
In the first quarter of 2025 (1Q25), EPF recorded RM18.31 billion in investment income, down 13% from RM20.99 billion in the same period last year.
Despite the decline, Lim said EPF remains committed to delivering competitive returns to contributors while continuing to support the domestic market.
'EPF continues to prioritise and support the local market and actively invests in domestic bonds and equities,' she said.
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