Epf Q1 2025 Investment Income Drops 13 Amid Global Market Uncertainty

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 The finance ministry says the lower returns were largely caused by rising global trade tensions and the uncertain trade policies of the US.
The finance ministry said the decline in EPF’s investment income was not related to its foreign asset sales or its increased domestic investments to support the ringgit.KUALA LUMPUR: EPF reported a 13% drop in investment income for the first quarter of 2025, earning RM18.31 billion compared to RM20.99 billion in the same period last year
According to the finance ministry, the decline was mainly due to weaker global equity markets and was not related to EPF’s foreign asset sales or its increased domestic investments to support the ringgit.
“The lower returns were largely caused by rising global trade tensions and the uncertain trade policies of the US,” the ministry said in a written parliamentary reply.
While some central banks have started to ease their monetary policy, the ministry noted that investor sentiment remained weak due to ongoing geopolitical instability, fiscal concerns, and regional conflicts – all of which had hurt market confidence.
The ministry was responding to Tanjong Karang MP Dr Zulkafperi Hanapi, who asked about the reasons behind the income decline and whether it was linked to overseas asset sales.
It said EPF’s equity investment returns fell 2% from RM14.02 billion in Q1 2024 to RM10.81 billion in Q1 2025.
Equities continue to be EPF’s largest income source, contributing 59% of total investment income in the first quarter of this year.
Despite the decline, the ministry stated that EPF would maintain a disciplined investment strategy based on its strategic asset allocation framework to ensure long-term and sustainable returns.- FMT

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