KUALA LUMPUR — The Employees Provident Fund (EPF) reported a 51% rise in total investment income for the first quarter ended March 31, 2026, reaching RM27.73 billion, up from RM18.31 billion in the same period last year.
The fund noted that the figure includes unrealised mark-to-market gains and losses on securities, primarily influenced by foreign exchange fluctuations, consistent with past reporting practices, Bernama reported.
Equities led the gains, contributing RM20.34 billion—an 88 per cent increase from RM10.80 billion in 1Q 2025—supported by broad-based market growth earlier in the quarter as investor sentiment strengthened.
“However, this momentum eased in March as escalating geopolitical tensions and global uncertainty triggered heightened market volatility,” EPF said.
Fixed-income instruments, comprising Malaysian Government Securities, loans, and bonds, contributed RM6.76 billion, representing 24 per cent of total investment income. EPF described this asset class as a stable and resilient component, providing defensive support amid market fluctuations.
Meanwhile, real estate and infrastructure generated RM0.19 billion, and money market instruments produced RM0.44 billion, both aligning with expected returns for these asset classes.
Total investment assets reached RM1.44 trillion, with 36 per cent allocated internationally. Overseas investments yielded RM15.36 billion, accounting for 55 per cent of quarterly income, highlighting the role of geographic diversification in boosting returns and mitigating portfolio risk.
Total investment income for Simpanan Konvensional and Simpanan Shariah stood at RM22.63 billion and RM5.10 billion, respectively.
Labour market conditions remained stable in February 2026, with the unemployment rate at 2.9 per cent, according to the Department of Statistics Malaysia. Amid this environment, EPF added 220,925 new members in 1Q 2026, bringing total membership to over 18.3 million. Active members rose to 10.8 million, improving the active-to-inactive ratio to 59:41, while active employers increased to 642,609, following 19,956 new registrations during the quarter.
Total contributions climbed 13.3 per cent to RM38.01 billion from RM33.54 billion in the same quarter last year. Voluntary contributions also gained momentum, rising to RM8.83 billion, reflecting continued member engagement through EPF’s digital platforms. The number of Malaysian formal sector members contributing above statutory rates via i-Topup grew 19.8 per cent to 232,305.
EPF chief executive officer Ahmad Zulqarnain Onn said the strong first-quarter income reflected a deliberate portfolio strategy to realise gains ahead of expected market turbulence.
“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,” he said. – May 19, 2026