Malaysia's national pension fund EPF Q1 income drops on volatility
[KUALA LUMPUR] Malaysia's state retirement fund reported a 13 per cent year-on-year drop in investment income for the first three months of the year due to volatility in global markets.
Investment income for the first quarter dropped to RM18.31 billion (S$5.5 billion) from RM20.99 billion a year ago, the Employees Provident Fund (EPF) said in a statement on Tuesday (Jun 3). Contribution from equities – the biggest asset class – slid 23 per cent from a year ago.
'Whilst the announcement of tariffs was made by the US administration on Apr 2, uncertainties surrounding US trade policies had begun to affect major stock markets throughout the quarter,' EPF chief executive officer Ahmad Zulqarnain Onn said in the statement.
Total investment assets stood at RM1.26 trillion as of end-March, with 38 per cent invested internationally, the fund said.
EPF is adopting a cautious outlook as concerns over global political instability, fiscal imbalances and regional conflicts continue to dampen market sentiment and undermine investor confidence. The retirement fund paid out its highest dividend rates in seven years for 2024, thanks to strong domestic markets and resilient economic growth.
'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,' Ahmad Zulqarnain said.
As of March, EPF had 16.3 million members, with 8.88 million of them active contributors – representing 51.7 per cent of Malaysia's 17.31 million labour force. BLOOMBERG
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