The Employees Provident Fund (EPF) posted investment income of RM27.73 billion for the first quarter ending March 31, 2026, marking a 51% increase from RM18.31 billion in Q1 2025 [1, 2, 3, 4]. This surge was largely driven by strong equity returns and foreign exchange gains.
Equities income rose 88% to RM20.34 billion, boosted by significant gains in global markets including a 24.8% rise in the Nasdaq and a 43.4% surge in the Nikkei 225, alongside an 11.7% gain in Malaysia’s FTSE Bursa Malaysia KLCI index [2, 3, 5, 4]. Fixed income investments contributed RM6.76 billion, accounting for 24% of total income, while real estate and infrastructure generated RM190 million, and money market instruments added RM440 million [2, 3, 6, 7, 4].
Unrealised mark-to-market gains and losses shaped the investment income, with foreign exchange fluctuations playing a significant role [1, 2, 3, 6, 5, 7, 4]. International assets made up 36% of EPF’s portfolio and contributed RM15.36 billion—55% of the total income for the quarter [2, 8, 4, 9].
Total EPF investment assets reached RM1.44 trillion as of March 31, 2026 [2, 3, 6, 7, 4]. Membership exceeded 18.3 million, including 220,925 new members in Q1, with approximately 10.8 million active members and 642,609 active employers [2, 8, 4]. Contributions rose 13.3% to RM38.01 billion, driven by strong voluntary contributions [2, 8, 4].
EPF CEO Ahmad Zulqarnain Onn attributed the strong quarter to portfolio managers front-loading income that would otherwise have been spread across the year. He cautioned that the results are unlikely to repeat in coming quarters. "The underlying portfolio continues to be managed for sustainable, long-term returns and not short-term peaks," he said [3]. He added that EPF entered the uncertain market conditions in a position of strength and will focus on capital preservation and disciplined deployment to secure members’ retirement savings over the long term [4].
Economists called for caution, noting the reliance on unrealised gains and ongoing global risks. Universiti Putra Malaysia’s Dr Lee Chin said contributors should temper expectations despite the strong quarter, as EPF may keep buffers for dividends in weaker periods [10]. Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid warned of continued elevated volatility due to uncertain US interest rates, geopolitical conflicts, and protectionist policies [10].
The EPF’s next milestone will be its full-year 2026 results, where investment income performance will reflect global market conditions for the remaining quarters.
