Kuala lumpur: The Employees Provident Fund's (EPF) total investment income experienced a significant rise, increasing by 48 percent to RM57.50 billion in the first half of 2026, ending June 30. This marks a substantial improvement from RM38.92 billion recorded in the corresponding period of the previous year.
According to BERNAMA News Agency, the EPF highlighted that this figure includes unrealised mark-to-market gains and losses on securities, primarily influenced by fluctuations in foreign exchange rates. Consistent with previous years, these unrealised gains and losses are not distributable as dividends. Total investment income for the second quarter of 2026 stood at RM29.77 billion, marking a 44 percent increase from RM20.61 billion in the same quarter of the prior year.
Equities income saw a notable surge, increasing by 52 percent to RM20.94 billion in 2Q 2026, compared to RM13.77 billion in 2Q 2025. The strong recovery in global equity markets provided fund managers with opportunities to capitalise on gains, significantly contributing to income growth. Improved investor sentiment, driven by easing concerns over energy prices and confidence in the artificial intelligence investment supercycle, played a role in this growth. Equities accounted for 70 percent of the total investment income for the quarter.
Fixed income instruments contributed RM6.91 billion, accounting for 23 percent of the total investment income in 2Q 2026. Malaysian government securities and equivalents, alongside loans and bonds, continued to offer stable and resilient returns, acting as a key defensive component amid market volatility. Real estate and infrastructure recorded an income of RM1.30 billion in 2Q 2026, while money market instruments generated RM620 million, aligning with return expectations for these asset classes.
EPF reported total investment assets for 2Q 2026 at RM1.54 trillion, with 39 percent invested globally. International investments generated RM19.29 billion, making up 65 percent of the total investment income. Income from conventional and shariah savings stood at RM24.16 billion and RM5.61 billion, respectively.
EPF's chief executive officer, Ahmad Zulqarnain Onn, stated that the fund capitalised on strong global equity markets while maintaining a disciplined long-term investment approach. He noted, "Similar to the first quarter, we continued to front-load income during 2Q as market and geopolitical risks remain elevated." He also advised members to moderate expectations for the second half of the year, emphasizing the focus on delivering sustainable long-term returns backed by a resilient portfolio.