KUALA LUMPUR, May 19 — The Employees Provident Fund’s (EPF) total investment income rose by 51 per cent to RM27.73 billion for the first quarter ended March 31, 2026 (1Q 2026) from RM18.31 billion recorded in the same period last year.
In a statement, EPF said the figure includes unrealised mark-to-market gains and losses on securities, consistent with previous years, arising mainly from foreign exchange rate fluctuations.
Equities income increased 88 per cent to RM20.34 billion in 1Q 2026 from RM10.80 billion in 1Q 2025, driven by broad-based market gains in the early part of the quarter, as improving investor sentiment lifted most major indices.
“However, this momentum eased in March as escalating geopolitical tensions and global uncertainty triggered heightened market volatility,” it said.
EPF said its fixed-income instruments contributed RM6.76 billion, accounting for 24 per cent of total investment income in 1Q 2026. This asset class, comprising Malaysian Government Securities and equivalents, as well as loans and bonds, continued to provide stable and resilient returns, serving as a key defensive component of the portfolio amid market uncertainties.
It said real estate and infrastructure recorded an income of RM0.19 billion in 1Q 2026, while money market instruments generated RM0.44 billion, in line with return expectations for these asset classes.
EPF said total investment assets reached RM1.44 trillion, of which 36 per cent was invested globally.
International investments generated RM15.36 billion, accounting for 55 per cent of total investment income for the quarter, underscoring the importance of geographical diversification in enhancing returns and managing portfolio risk.
Total investment income for Simpanan Konvensional and Simpanan Shariah was RM22.63 billion and RM5.10 billion, respectively.
The Department of Statistics Malaysia reported that labour market conditions remained stable in February 2026, with the unemployment rate remaining at 2.9 per cent.
“Amid these conditions, EPF registered 220,925 new members in 1Q 2026, bringing total membership to over 18.3 million,” said the fund.
Active members rose to 10.8 million, with the active to inactive ratio improving to 59:41, while active employers increased to 642,609 as at March 2026, following 19,956 new registrations during the quarter.
EPF stated that total contributions increased by 13.3 per cent to RM38.01 billion in 1Q 2026, from RM33.54 billion in the same period last year.
Voluntary contributions continued to gain momentum, increasing to RM8.83 billion in the quarter, and this reflects sustained member participation in voluntary savings, supported by EPF’s digital platforms, which enable seamless and accessible contributions.
The number of Malaysian formal sector members contributing above statutory rates through i-Topup increased 19.8 per cent to 232,305.
EPF chief executive officer Ahmad Zulqarnain Onn said the fund’s high first-quarter income reflects a portfolio decision taken at the beginning of this year to realise gains ahead of anticipated market turbulence.
He said the portfolio managers front-loaded income that would otherwise have been spread across the full year. Members should not extrapolate this quarter’s result, as it is unlikely to be repeated in subsequent quarters.
“The underlying portfolio continues to be managed for sustainable, long-term returns and not short-term peaks. Our priority now is capital preservation and disciplined deployment to ensure the adequacy and sustainability of retirement savings for our 18 million members over the long term,” said Ahmad Zulqarnain. — Bernama
Date: 19 May, 2026 8:00 pm
Source: Malay Mail
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