The Employees Provident Fund (EPF) recorded a strong investment income performance of RM27.73 billion for the first quarter ended 31 March 2026, marking a 51 per cent increase compared to RM18.31 billion posted during the same period last year.
As in previous years, the figure includes unrealised gains and losses based on mark-to-market valuation of securities, mainly influenced by fluctuations in foreign exchange rates.
EPF chief executive officer Ahmad Zulqarnain Onn said the solid quarterly performance reflected strategic portfolio decisions made earlier this year to lock in gains amid expectations of market volatility.
He explained that portfolio managers had accelerated income generation that would typically be distributed throughout the year, adding that members should not view the first quarter’s performance as an indication of results for the coming quarters.
According to him, the retirement fund remains focused on delivering sustainable long-term returns rather than chasing short-term gains, especially as the global economic environment continues to face uncertainty.
“High geopolitical risks, rising oil prices and renewed inflationary pressures continue to pose significant challenges to global markets,” he said in a statement on Tuesday.
He added that the proactive measures taken earlier had placed EPF in a stronger position to weather market uncertainties, with current priorities centred on capital preservation and disciplined investment execution to ensure long-term retirement savings sustainability for its 18 million members.
Equity investments remained the biggest contributor to EPF’s earnings, surging 88 per cent from RM10.80 billion in the first quarter of 2025 to RM20.34 billion in the same period this year.
The increase was largely driven by broad market gains at the start of the quarter, supported by improving investor sentiment which pushed most major indices higher. However, momentum began slowing in March as escalating geopolitical tensions and global uncertainty triggered greater market volatility.
Fixed income instruments contributed RM6.76 billion, accounting for 24 per cent of the total investment income for the quarter. The asset class, which includes Malaysian Government Securities, continued to provide stable and resilient returns, serving as a key defensive component within EPF’s portfolio.
Meanwhile, real estate and infrastructure investments generated RM0.19 billion, while money market instruments posted RM0.44 billion in gains, in line with expected returns for the respective asset classes.
EPF’s total investment assets reached RM1.44 trillion as of March 2026, with 36 per cent invested globally. International investments generated RM15.36 billion, making up 55 per cent of total investment income for the quarter, highlighting the importance of geographical diversification in strengthening returns and managing portfolio risks.
Investment income for Conventional Savings stood at RM22.63 billion, while Shariah Savings contributed RM5.10 billion.
On membership growth, EPF welcomed 220,925 new members during the first quarter, bringing total membership to more than 18.3 million.
Active members rose to 10.8 million, with the ratio of active to inactive members improving to 59:41. The number of active employers also increased to 642,609 as of March 2026 following 19,956 new registrations during the quarter.
Total contributions climbed 13.3 per cent to RM38.01 billion compared to RM33.54 billion recorded during the same period last year.
Voluntary contributions also maintained positive momentum, rising to RM8.83 billion during the quarter, reflecting continued participation from members through EPF’s digital platforms that enable seamless and convenient contributions.
At the same time, the number of formal sector contributors topping up beyond the statutory contribution rate through the i-Topup facility increased 19.8 per cent to 232,305 members.
