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Borneo Post
5 days ago
- Business
- Borneo Post
EPF records total investment income of RM18.31 bln for 1Q 2025
File photo for illustration purposes KUALA LUMPUR (June 4): The Employees Provident Fund (EPF) recorded investment income totalling RM18.31 billion for the first quarter ended March 31, 2025 (1Q 2025), a 13 per cent decline from RM20.99 billion in the corresponding period in 2024. It said 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 noted that global markets turned volatile early in 2025 on renewed trade frictions and policy uncertainty. He added that uncertainties surrounding US trade policies affect major stock markets throughout the quarter although the tariff announcement was made by the US administration on April 2. '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,' Ahmad Zulqarnain said in a statement yesterday. During 1Q 2025, equities contributed RM10.81 billion, a 23 per cent decline from RM14.02 billion recorded in 1Q 2024 mainly due to weaker performance across global equity markets and a challenging investment climate. EPF said equities continued to be the highest contributor, accounting for 59 per cent of total investment income while fixed Income continued to anchor capital preservation, contributing RM5.99 billion or 33 per cent of total investment income. Fixed income, comprising Malaysian Government securities and equivalents, loans and bonds, continued to fulfil its dual mandate of delivering stable returns and as a counterbalance to equity market fluctuations. Real estate and infrastructure recorded an income of RM1.08 billion in 1Q 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 conventional savings and RM2.44 billion for shariah savings. As of March 2025, EPF's investment assets totalled RM1.26 trillion, with 38 per cent invested internationally. During the period, international investments generated RM8 billion or 44 per cent of the total investment income. The EPF said its domestic investments, which account for 62 per cent of total assets, continued to provide long-term income stability through dividends, interests and profits from sukuk. It added that the EPF remains committed to supporting Malaysia's economic growth by continuing to invest over 70 per cent of its annual allocation in the domestic market. Meanwhile, Ahmad Zulqarnain said the downward revisions in global and regional growth forecasts, including Malaysia's, reflect rising external risks amid 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. 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, representing 51.3 per cent of the 17.31 million labour force. The EPF's active-to-inactive member ratio remained stable at 54:46 in 1Q 2025. New employer registration reached 19,600 in the first quarter of this year, increasing total active employers registered with the EPF to 616,558. Total contributions increased by 15.1 per cent to RM33.54 billion, up from RM29.13 billion in 1Q 2024 while total voluntary contributions rose by 62 per cent to RM7.02 billion, from RM4.33 billion a year earlier. The EPF said the number of formal sector members contributing above the statutory rate was 10,990 in 1Q 2025, compared to 6,771 in the same period last year. – Bernama Employees Provident Fund first quarter investment income
The Sun
6 days ago
- Business
- The Sun
EPF posts investment income of RM18.31 billion for first quarter
PETALING JAYA: The Employees Provident Fund (EPF) recorded a total investment income of RM18.31 billion for the first quarter ended March 31, 2025 (Q1'25), 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. During the quarter under review, equities contributed RM10.81 billion, a 23% decline from RM14.02 billion in Q1'24. 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 Q1'25, while money market Instruments generated RM430 million, 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, the 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 said in a statement it 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 Madani Economy 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 CEO Ahmad Zulqarnain Onn said: '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.'
BusinessToday
6 days ago
- Business
- BusinessToday
EPF's 1Q Investment Income Down 13% To RM18.31 Billion
The Employees Provident Fund (EPF) reported an investment income of RM18.31 billion for the first quarter ended March 31, 2025 (1Q25), marking a 13% decline from the RM20.99 billion recorded in the same period last year, as global market volatility and renewed trade tensions weighed on performance. The EPF attributed the lower income primarily to a 23% drop in equities returns, which contributed RM10.81 billion compared to RM14.02 billion in 1Q24. Despite the decline, equities remained the largest contributor, accounting for 59% of total investment income. Chief Executive Officer Ahmad Zulqarnain Onn said global markets turned volatile in early 2025, driven by renewed US trade frictions and persistent policy uncertainty, which dampened investor sentiment. The announcement of new US tariffs on April 2 further intensified uncertainty, impacting major stock markets throughout the quarter. 'Although inflationary pressures have eased in many economies, asynchronous monetary policy easing across regions has limited risk appetites. 'Nevertheless, the EPF's diversified global portfolio cushioned the impact and kept us on course for long-term value creation,' Ahmad Zulqarnain said. He shared that fixed income instruments delivered RM5.99 billion, or 33% of total income, reinforcing the EPF's capital preservation strategy. 'Real estate and infrastructure contributed RM1.08 billion, while money market instruments generated RM0.43 billion, consistent with expectations. 'Of the total investment income, RM15.87 billion was for conventional savings, and RM2.44 billion for shariah savings,' he said, adding that a total of RM1.02 billion in unrealised gains from foreign exchange fluctuations were excluded from dividend distribution, in line with EPF's policy. As of March 2025, EPF's total investment assets stood at RM1.26 trillion, with 38% invested internationally. International investments generated RM8 billion, or 44% of total investment income. Meanwhile, 62% of assets remained in domestic markets, which the fund said continues to provide long-term income stability. Ahmad Zulqarnain reaffirmed EPF's commitment to supporting Malaysia's economic development, stating that over 70% of the annual investment allocation remains domestically focused. Looking ahead, Ahmad Zulqarnain said the EPF will continue to maintain a dynamic, diversified portfolio to navigate risks and seek sustainable long-term returns for members. 'In a more challenging and uncertain market environment, we remain focused on strengthening our portfolio and exploring investment opportunities both domestically and abroad,' he added. Related
New Straits Times
6 days ago
- Business
- New Straits Times
EPF posts RM18.31bil investment income in Q1, total assets at RM1.26tri
KUALA LUMPUR: The Employees Provident Fund (EPF) has recorded a total investment income of RM18.31 billion for the first quarter ended March 31, 2025 (1Q25). This marks a 13 per cent decline from RM20.99 billion in the corresponding period in 2024. In a statement today, EPF said 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," it said. During the quarter under review, equities contributed RM10.81 billion, a 23 per cent decline from RM14.02 billion recorded in the first quarter of 2024 (1Q24). The fund attributed the decline to underperformance in global equity markets and a difficult investment environment. "The asset class continued to be the highest contributor, accounting for 59 per cent of total investment income," it adds. Meanwhile, fixed income investments remained a key pillar for capital preservation, generating RM5.99 billion, which accounted for 33 per cent of the 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," it said. Real estate and infrastructure recorded an income of RM1.08 billion in 1Q25, while money market instruments generated RM0.43 billion. Of the total investment income, RM15.87 billion was generated for Simpanan Konvensional, and RM2.44 billion for Simpanan Syariah. "As of March 2025, EPF's total investment assets stood at RM1.26 trillion, with 38 per cent invested internationally. "During the period, international investments generated RM8 billion or 44 per cent of the total investment income," the fund said. Its domestic investment, which accounts for 62 per cent of its total assets, continues 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 per cent 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," it added. EPF chief executive officer Ahmad Zulqarnain Onn noted that global markets became volatile in early 2025 due to renewed trade tensions and policy uncertainty. He said although the US administration officially announced tariffs on April 2, 2025, the uncertainty surrounding US trade policies had already started to impact 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," he said.
