KUALA LUMPUR (Oct 23): The Employees Provident Fund (EPF)'s overall domestic investment as of June 2023 grew to RM665 billion, marking a 9% increase compared to 2022, as reported by Deputy Finance Minister Datuk Seri Ahmad Maslan.

It is anticipated that total domestic investment will increase to RM700 billion by the end of 2023, according to Ahmad Maslan. 

He said EPF's investment decisions are guided by the fund allocation determined by the EPF investment panel each year. In the period from 2018 to 2022, an average of over 80% of the total fund allocation was designated for investment in the domestic market.

"For the year 2023, the EPF has allocated RM97 billion, accounting for 83% of its total investment funds, for domestic investments," said Ahmad Maslan in response to Kalam Bin Salan (PN-Sabak Bernam) during an oral question and answer session in the Dewan Rakyat on Monday.

Ahmad Maslan affirmed the EPF's commitment to prioritising domestic investments, emphasising that a significant portion of the annual funds will be directed toward the local investment market, including money markets at local banks.

"To ensure optimal and sustainable investment, the EPF panel adheres to Strategic Asset Allocation (SAA), strategically allocating EPF assets across various asset classes, geographical regions, mandates, and strategies in alignment with the EPF's investment strategy as a retirement fund," he added.

According to Ahmad Maslan, the EPF's investment portfolio for 2022 to 2024 includes allocations, such as fixed income instruments at 45.5%, listed equity at 42.5%, private equity at 3%, real assets at 6%, and money market instruments at 3%.

In May 2023, Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the finance minister, urged the EPF to increase its domestic investment to 70%, up from 64% in the previous year.

Anwar emphasised that EPF should align its investments with the government's priorities, including youth involvement, food security, and support for startups.

Regarding a supplementary question from Kalam Salan, Ahmad Maslan stated that the government would not allow targeted EPF withdrawals in the future.

He noted that the EPF had permitted a total of RM145.5 billion, through four rounds of withdrawals initiated by the government, including i-Lestari (RM20.8 billion), i-Citra (RM21.4 billion), i-Sinar (RM58.7 billion), and special withdrawal (RM44.6 billion).

He highlighted that Datuk Seri Anwar Ibrahim, in his 2024 budget speech, had announced the introduction of a Flexible Account designed to enable people to make withdrawals during emergencies.

He added that the Flexible Account can be accessed by all members, whether they are from the B40, M40, or T20 groups. This is to ease the financial burden of those facing emergencies.

"However, specific details, such as the scope and limitations of this account, are still being finalised and will be announced at a later date," he said.

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