Malaysia's EPF records RM57.57bn in 9-month total investment income as of end-Sep 2024

As of September 2024, the EPF’s investment assets valued at a total of RM1,222.34bn, with 62.2% and 37.8% allocated to Malaysian and international investments.

The Employees Provident Fund (EPF) recorded a total investment income of RM57.57bn for the nine months ended on 30 September 2024. This was a 20% increase from the the corresponding period in 2023, which recorded a value of RM47.86bn. For the third quarter (Q3 2024) ended 30 September 2024, EPF’s investment income was RM19.67bn, a RM5bn increase from the previous year (RM14.67bn).

EPF Chief Executive Officer Ahmad Zulqarnain Onn said strong performance of EPF reflects its investment strategy of maintaining a highly diversified portfolio across major asset classes. He also added that the highly anticipated reduction in the US interest rates by 50 basis points in September drove market sentiment and gains across various sectors including REITs, utilities and financials. These contributed to the positive impact of EPF’s investment portfolio as the overall global markets remained positive.

Malaysia’s GDP grew by 5.9% year-on-year in Q2 as the FBM KLCI closed at 1648 at the end of Q3, returning 13% year-to-date. Equity investments continued to be the key contributor in Q3 2024 as it generated RM18.32bn, which was seen as a significant increase from last year’s value of RM9.17bn. The rise in investment reflected EPF’s positive momentum in equity markets and its proactive approach in realising gains amidst market volatility.

Fixed Income compromising Malaysian Government Securities and Equivalents as well as Loans and Bonds contributed RM6.51bn (33%) to EPF’s total investment income for Q3 2024.

Strong labour market growth raising EPF membership and contributions

Malaysia’s labour market has reflected to be healthy with employment rising by 1.9% year-on-year and unemployment rates remaining low at 3.2%. Labour force participation rates have also remained stable at 70.5%. This impact on the labour market environment can be attributed to an increase in EPF’s new membership where it saw 364,364 new registrations in the first three quarters of 2024, amounting to a total of 16.1mn memberships. Of these, 8.69mn are active members which represent slightly more than half (50.4%) of the country’s labour force of 17.24mn.

The i-Saraan scheme is also experiencing a significant growth in enhancing retirement income security for Malaysians in the informal sector and those without fixed incomes. Total contributions saw a 103% increase from RM789.3mn to RM1. 61bn. Number of members also grew by 56% from 211,361 to 330,196 within a year. Total voluntary contribution rose by 72%, jumping from RM6.03bn to RM10.37bn in one year. Meanwhile, formal sector members who opted to contribute more than the statutory rate was 65,695 in 9M 2024, compared to 55,946 in 9M 2023.

As part of Budget 2025, the i-Saraan scheme will be undergoing enhancements as CEO Ahmad welcomed the government’s announcement on 18 October 2024. Enhancements will be made to boost the retirement income security of the country as emphasised in the Ekonomi MADANI framework. This includes an increase in the matching incentive from 15% to 20%, up to a maximum of RM500 per year and a lifetime limit of RM5,000 per individual, set to take effect on 1 January 2025.

READ MORE: Malaysia’s labour market remained strong in September and Q3 2024: DOSM