Cover image via Alif Omar/Scoop & KWSPFollow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.
The Employees Provident Fund (EPF) has reported a sharp 51% jump in investment income for the first quarter of 2026, but is simultaneously warning members not to assume the performance will continue throughout the year
In a statement yesterday, 19 May, the retirement fund announced total investment income of RM27.73 billion for the quarter ended 31 March 2026, compared to RM18.31 billion recorded in the same period last year.
But despite the blockbuster figure, EPF chief executive officer Ahmad Zulqarnain Onn stressed that the result was driven by a deliberate strategy to cash in gains early before expected turbulence in global markets.
"EPF's strong first-quarter income reflects a portfolio decision taken at the beginning of this year to realise gains ahead of anticipated market turbulence," he said.
"Our portfolio managers front-loaded income that would otherwise have been spread across the full year. Members should not extrapolate this quarter's result, as it is unlikely to be repeated in subsequent quarters."
EPF's Q1 2026 investment performance summary.
Image via KWSPThe warning forms the central message behind EPF's latest earnings update
According to the fund, while it benefited from strong market conditions earlier in the quarter, it expects the global environment to become significantly more volatile moving forward.
According to Ahmad Zulqarnain, rising geopolitical tensions, climbing oil prices, and renewed inflationary pressures are creating "real headwinds" for global markets.
"The environment ahead remains challenging," he said.
"Our priority now is capital preservation and disciplined deployment to ensure the adequacy and sustainability of retirement savings for our 18 million members over the long term."
The strongest contributor to EPF's Q1 performance came from equities
It generated RM20.34 billion in income, accounting for 73% of total investment income during the quarter.
This marks an 88% increase from the RM10.80 billion recorded from equities during Q1 2025.
EPF said the gains were driven by broad-based market rallies earlier in the quarter as investor sentiment improved across major indices. However, momentum began slowing in March amid escalating global uncertainty.
Fixed income instruments, meanwhile, contributed RM6.76 billion, making up 24% of total investment income.
The fund said the asset class continued serving as a defensive stabiliser within its portfolio amid market volatility. The category includes Malaysian government securities, loans, and bonds.
As of March 2026, EPF's total investment assets stood at RM1.44 trillion, with 36% invested internationally
International investments generated RM15.36 billion during the quarter, accounting for 55% of total investment income.
The retirement fund also reported continued growth in contributions and membership participation.
Total contributions rose 13.3% year-on-year to RM38.01 billion, while voluntary contributions climbed to RM8.83 billion.
EPF said the increase was partly supported by its digital platforms, which have made voluntary savings contributions more accessible.
The fund registered 220,925 new members during the quarter, bringing total membership to more than 18.3 million.
Active members rose to 10.8 million, while the active-to-inactive member ratio improved to 59:41.
Total contributions received year-on-year.
Image via KWSP