EPF’s Q1 2025 investment income drops by double digits
EPF’s returns are high by any standard especially in these few years where things are more uncertain. Take a look at the returns as below:
EPF cannot escape what is happening in the world
However with so much uncertainty, it is inevitable that it will affect EPF’s income no matter how thorough the EPF fund managers do their homework. Buying a great company does not mean this great company can continue to do very well if the world is not doing well. So, this report has just been released some people may think EPF is losing money?
Article in freemalaysiatoday.com. 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. 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. Full article here: Article in freemalaysiatoday.com.
Did you know we can increase savings into EPF voluntarily?
If compared to FD, actually the EPF dividend are higher. The only issue is that we cannot touch the EPF money until we are 55 or 60 while if our money is in the FD, it’s available for us at any time. So, both have their disadvantages. However, did you know that you can voluntarily save more money into the EPF? This money would then also earn the same dividend as your existing EPF savings too. Therefore, for those who are not so savvy with their investments, perhaps this can be a good choice too.
Generally, everyone qualifies if they meet the following:
Lots of ways to make payment / contribution
Maximum contribution per year is RM100,000
Generally, my persona hunch about this year’s EPF dividend is…
I think it will still be higher than the FD rates. Do you know why? Here are the typical FD rates:
May be prudent to stop thinking of ways to withdraw EPF savings lah. Earn more, invest more and EPF will be handy when we retire in the future. For now, just stop spending above our means. I also wish the government will no longer allow members to withdraw their ‘future’ savings today. It’s so low today versus the same amount today doubling in the next 12-15 years. Hope this explains why I continue to believe EPF savings as the best practical and safe option.
Cheers.
Please feel free to share this article too. (links are all below) Thank you!
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.
Else, follow me on Twitter here.
Discover more from kopiandproperty.com
Subscribe to get the latest posts sent to your email.