Total EPF investment assets as of Sept 2022 at RM961.1 bil: Ahmad

KUALA LUMPUR – The total investment assets of the Employees Provident Fund (EPF) as of September 2022 are worth RM961.1 billion, said Deputy Finance Minister Datuk Seri Ahmad Maslan.

He said EPF’s money is currently invested in a number of instruments such as fixed income instruments as much as 48%, Malaysian listed equities (up to 37%), private equities (up to 49%), real assets (7%), and money market instruments (5%).

“EPF also invests in domestic investment of up to 64% and overseas investment (36%),” he said during an oral question-and-answer session in Parliament today.

He answered additional questions from Datuk Mohd Shahar Abdullah (Paya Besar-BN) regarding the total amount of EPF assets, retirement savings fund investment instruments, and the difference between past and present dividends.

Commenting on the comparison of dividends, Ahmad said returns in the past were higher, between 7% and 8%, compared with now because of the difference in dividends obtained from fixed income instruments and the percentage of the inflation rate.

“The situation now is different. The dividend recorded by fixed income instruments in the past was high, between 7% and 8%, and the inflation rate was also high, but inflation is now at 3.8% and the dividend of fixed income instruments is only between 3% and 3.5%, so the dividend is as we get,” he added.

Meanwhile, in response to an additional question from Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal (Bukit Gantang-PN) on the dividend and limit for the voluntary contribution rate, Ahmad said there is a proposal to increase the contribution rate from RM60,000 to RM100,000, to be announced by the finance minister in Budget 2023.

“Presently, the amount of voluntary contribution is limited to a maximum of RM60,000 and the dividend is based on the amount of contribution made.

“However, if there is an increase in the amount of voluntary contribution after this, (there is the possibility) of an increase in the dividend... (if) the dividend announced by the EPF is large, then that is the dividend they will get,” he said. – Bernama, February 16, 2023