KUALA LUMPUR (Aug 17): The Employees Provident Fund (EPF) on Monday announced a 44% year-on-year surge in second-quarter investment income to RM29.77 billion from RM20.61 billion a year earlier, driven by a rally in global equities, but cautioned members to temper return expectations for the second half of the year.

It recorded total investment income of RM57.5 billion for the first six months ended June 30, 2026, up 48% from RM38.92 billion in the corresponding period a year earlier. This includes unrealised mark-to-market gains and losses on securities that arise mainly from foreign exchange rate fluctuations.

EPF chief executive officer Ahmad Zulqarnain Onn said in a statement that the pension fund capitalised on strong global equity markets while maintaining a disciplined long-term investment approach.

“Similar to the first quarter, we continued to front-load income during the second quarter as market and geopolitical risks remain elevated,” he said.

"While equity markets have supported performance in the first half of the year, members should temper expectations as such market opportunities may not repeat itself in the second half of the year. Our focus remains on delivering sustainable long-term returns, backed by a resilient portfolio,” he added.

For the latest quarter, equities were the largest contributor to the fund’s investment income, generating RM20.94 billion, up 52% from RM13.77 billion a year earlier. They accounted for 70% of total investment income.

Fixed-income instruments, comprising Malaysian Government Securities and equivalents, as well as loans and bonds, contributed RM6.91 billion, or 23% of total investment income.

Meanwhile, real estate and infrastructure generated RM1.3 billion, while money market instruments contributed RM620 million during the quarter.

The EPF’s total investment assets stood at RM1.54 trillion as at end-June, with 39% invested globally. International investments generated RM19.29 billion, accounting for 65% of total investment income in the second quarter of 2026.

On membership, the EPF registered nearly 441,850 new members during the first half of 2026, bringing total membership to nearly 18.5 million.

Active members rose to 10.9 million, improving the active-to-inactive member ratio to 59:41. The number of active employers also increased to more than 645,200 as at June, following 37,265 new employer registrations during the quarter.

Total contributions rose 8.5% year-on-year to RM33.87 billion in the second quarter from RM31.21 billion.

Voluntary contributions reached RM14.15 billion in the first half of 2026. Contributions through i-Saraan grew 15.7% to RM1.33 billion, while the number of Malaysian formal-sector members contributing above statutory rates through i-Topup increased 13.9% year-on-year to nearly 204,450 in the first half of the year.