KUALA LUMPUR (Nov 11): The Employees Provident Fund (EPF) said its investment income for the third quarter ended Sept 30, 2024 (3Q2024) came to RM19.67 billion, up 34.1% or RM5 billion from RM14.67 billion it made in 3Q2023.

This pushed its total investment income for the January-September period to RM57.57 billion, up 20% from RM47.86 billion in the corresponding January-September period last year, it said in a statement.

For 3Q2024, equity investments made up the bulk of the income contributed to the pension fund, accounting for 93% of the total investment income in the quarter, with RM18.32 billion generated, nearly doubling from RM9.17 billion a year ago.

For comparison, equity investments made up 63% of the total investment income in 3Q2023.

Meanwhile, fixed income instruments comprising Malaysian Government Securities and equivalents, as well as loans and bonds, contributed 33% or RM6.51 billion to EPF’s total investment income for 3Q2024.

International investments contributed RM10.50 billion, or 53% of the total investment income, the fund said.

As of September 2024, EPF’s investment assets totalled RM1.22 trillion, with 62.2% and 37.8% allocated to Malaysian and international investments respectively.

“Global markets were generally positive during the quarter, driven by the start of the interest rate easing cycle as the US Federal Reserve reduced interest rates by 50 basis points in September,” said EPF chief executive officer Ahmad Zulqarnain Onn.

“The highly anticipated reduction in the US interest rates drove market sentiment and gains across multiple sectors, including REITs, utilities and financials, all of which positively impacted the EPF’s investment portfolio.

"Nonetheless, risks remain in the global outlook such as the trajectory and pace of interest rate reductions, persistent and escalating geopolitical tensions particularly in the Middle East, and potential higher import tariffs into the US with the election of Donald Trump last week,” he said.

"Malaysia’s GDP grew by a solid 5.9% year-on-year in 2Q, while the FBM KLCI closed at 1,648 at the end of 3Q, returning 13% year-to-date. Investor sentiment remains positive, bolstered by the performance of Malaysian companies, economic policies, and fiscal reforms," he added.

That said, as a majority of EPF's real estate and infrastructure investments are denominated in non-ringgit currencies, the strengthening of the ringgit against the US dollar saw these investments book a loss of RM3.71 billion. On a constant currency basis, the segment recorded a gain of RM0.82 billion during the quarter.

Similarly, the money market instruments segment registered a loss of RM1.45 billion in 3Q2024.

Meanwhile, EPF said new member registrations grew by 364,364 to a total of 16.1 million EPF members as at Sept 30, 2024.

A total of 8.69 million are active members who contributed at least once in the last 12 months, which now represent 50.4% of Malaysia’s 17.24 million labour force.

Total contributions received increased 9.1% to RM25.2 billion in 3Q2024 from RM23.1 billion a year ago.

The pension fund also saw a higher number of voluntary contributors rising to 938,695 in 9M2024 from 730,066 in the previous year. Total voluntary contribution reached RM10.37 billion, marking an increase of 72% from the RM6.03 billion recorded last year.

As for the informal sector and those without fixed incomes, EPF’s i-Saraan scheme also saw growth, it said.

Throughout the first half of 2024, i-Saraan recorded total contributions of RM1.61 billion from 330,196 members, reflecting a 103% increase from RM789.3 million and a 56% increase from 211,361 members in the corresponding period in 2023.

From Jan 1, 2025 onwards, the government will increase the matching incentive of the i-Saraan scheme, from 15% to 20%, up to a maximum of RM500 per year and a lifetime limit of RM5,000 per individual.