The Employees Provident Fund (EPF) has reported significantly stronger investment results for 2025, raising expectations of a potentially higher dividend next year.
EPF recorded RM63.99 billion in total investment income for the nine months ended 30 September 2025 (9M 2025), an 11% increase compared to RM57.57 billion in the same period last year.
For Q3 2025, investment income surged to RM25.07 billion, marking a 27% jump from RM19.67 billion in Q3 2024.
Stronger markets & strategic allocation
EPF Chief Executive Officer Ahmad Zulqarnain Onn said the stronger performance reflects disciplined investment strategy and improving market conditions.
The 11% growth in total investment income, alongside 12% growth in assets under management, is a result of execution of our strategic asset allocation, which allowed the EPF to participate in the recovery of equity markets post-‘Liberation Day’,” he said.
Total assets under management grew 12% year-on-year to RM1.37 trillion, with 39% invested internationally.
International investments continued to play a major role, generating RM13.33 billion, or 53% of the fund’s Q3 income.
The fund added that while the year-to-date results have been encouraging, it is maintaining caution heading into the fourth quarter due to elevated global equity valuations and mixed global economic indicators.
EPF is also accelerating profit-taking to manage potential risks.
Where the income came from
In Q3 2025:
- Equities generated RM16.95 billion (68% of total income)
- Fixed income contributed RM6.75 billion (27%)
- Real estate & infrastructure added RM1.14 billion (4%)
- Money market instruments brought in RM0.23 billion (1%)
A total of RM20.48 billion was credited to Simpanian Konvensional, while RM4.59 billion went to Simpanan Shariah.
Higher dividend for 2025?
EPF declared a dividend of 6.30% for both Simpanan Konvensional and Simpanan Shariah in 2024.
With stronger investment income across 2025 and a notable rebound in equity markets, analysts say the fund is in a favourable position to potentially deliver a higher dividend next year.
However, Ahmad Zulqarnain cautioned that the final quarter could present challenges.
While the 9-month performance has been encouraging, we are cautious heading into the fourth quarter. The rally in global equity markets has elevated valuations, while mixed signals from global economic indicators may temper the pace of interest rate reductions.”
