EPF Gains RM33.19 Billion Total Investment Income in 1H 2023
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The Employees Provident Fund (EPF) has announced robust investment income and growth in membership. The net investment income after accounting for equity write-downs reached a substantial amount, according to a statement by the EPF. Notably, the EPF generated a significant portion of its income from mark-to-market gains of securities, attributed mainly to fluctuations in foreign exchange rates.
Positive Performance in Challenging Times
EPF's Chief Executive Officer, Datuk Seri Amir Hamzah Azizan, highlighted the positive performance of global equity markets in the first half of 2023. Despite rising interest rates, the developed markets, particularly the US, showed resilience. The EPF's adaptable investment strategy was pivotal in capitalizing on the market rally, leading to higher equity returns than the previous year.
Domestic Growth and Support
In Malaysia, the first quarter of 2023 saw a 5.6% growth in gross domestic product, surpassing expectations. This growth was attributed to firm domestic demand and labour market improvements. EPF remains dedicated to supporting the domestic market by allocating significant annual investments to domestic endeavours.
Steady Membership Growth
EPF's membership has grown to 15.90 million, with an all-time high of 8.47 million active members. This surge in active members can be attributed to Malaysia's recovery in labour market conditions and EPF's efforts to encourage voluntary contributions.
Increased Contribution and Opting for Voluntary Contributions
Contributions grew substantially, reaching RM50.48 billion in the first half of 2023, indicating a 16.8% increase from the previous year. Additionally, there was a notable rise in voluntary contributors, showing a positive trend in members' engagement with their contributions.
Opting for Higher Contributions
A noteworthy trend emerged among formal sector members who contributed beyond the statutory rate. The number of members opting for higher contributions increased significantly, demonstrating a commitment to building retirement savings.
EPF's consistent efforts to adapt to changing market conditions and support its members' financial well-being have contributed to its strong performance and growth.
