EPF’s Investment Income Rises: Key Highlights from 2025

EPF’s Investment Income Rises to RM38.92 Billion in First Half of 2025

Introduction

The Employees Provident Fund (EPF) has posted strong investment returns for the first six months of 2025. EPF recorded RM38.92 billion in total investment income for 1H 2025, up 3% from RM37.90 billion in the same period in 2024.

Key Highlights

EPF’s income in Q2 2025 alone reached RM20.61 billion, a 22% increase from RM16.91 billion in Q2 2024.
The total includes RM0.44 billion in unrealised mark-to-market gains due to foreign exchange fluctuations, which EPF will not distribute as dividends.

What Drove the Growth

Equities led the gains, producing RM13.77 billion in Q2 2025, up 35% from RM10.23 billion in Q2 2024, and forming 67% of that quarter’s total income.
Fixed Income instruments contributed RM6.73 billion, about 33%, helping buffer against equity volatility.
Real Estate & Infrastructure added income of RM0.29 billion, while Money Market Instruments suffered a RM0.18 billion foreign-exchange translation loss (due to Ringgit’s strength) in Q2.

Assets, Membership & Contributions

EPF’s total investment assets stood at RM1.31 trillion as at 30 June 2025 — an 8% year-on-year increase.
International investments made up 39% of total assets, and accounted for RM12.92 billion or 63% of Q2’s income.
Membership grew: EPF added 286,194 new members in 1H 2025; total membership reached 16.4 million, with 8.98 million active members.
New employer registrations hit 37,402, raising active employer count to 619,662.
Total contributions for Q2 2025 rose 13.8% year-on-year to RM31.21 billion. Voluntary contributions surged 55% in the first half of 2025.

What EPF Says

EPF CEO Ahmad Zulqarnain Onn noted that the rise in investment income came from a “long-term diversified investment approach,” steady market recovery, strong domestic contributions, and disciplined portfolio management.

However, EPF also cautioned about risks including softening global trade, unpredictable policies, inflation pressures, and geopolitical shifts. He affirmed that EPF’s strategy will focus on vigilance, risk management, and long-term resilience to protect members’ retirement savings.

Why It Matters

The performance signals EPF is effectively navigating a complex global and domestic environment.
Growth in assets and membership shows strong confidence from contributors.
The gains help strengthen EPF’s ability to support members’ retirement, especially amid macro-economic uncertainties.

Looking Ahead

EPF will continue focusing on investments aligned with Malaysia’s priorities, including the Ekonomi MADANI agenda via its GEAR-uP initiative in healthcare, aged care, and infrastructure.
EPF is preparing for mandatory contributions for non-Malaysian citizen employees, effective with October 2025 wages (November 2025 contributions).
Retirement savings account restructuring under the 13th Malaysia Plan remains on the table. EPF aims to help members’ savings last longer, while keeping withdrawal rights intact and offering voluntary opt-in for current members.

Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.

Sources: https://www.kwsp.gov.my/en/w/epf-records-total-investment-income-of-rm38-92-billion-for-1h-2025