The Employees Provident Fund (EPF) recorded a total investment income of RM57.50 billion for the first six months of 2026, a 48% increase from the RM38.92 billion posted in the same period last year and the strongest first half in the fund’s history.
In the same statement, issued on 17 August, EPF Chief Executive Officer Ahmad Zulqarnain Onn cautioned members against reading the figure as a signal of a larger dividend, saying market conditions that produced the result may not hold for the rest of the year.
Second-quarter investment income alone came in at RM29.77 billion, a 44% rise from RM20.61 billion in the corresponding quarter of 2025. The first quarter had already delivered RM27.73 billion, up 51% year on year.
The headline numbers, quarter by quarter
| Period | Investment income | Change vs year before |
|---|---|---|
| Q1 2026 | RM27.73 billion | +51% |
| Q2 2026 | RM29.77 billion | +44% |
| 1H 2026 total | RM57.50 billion | +48% |
| 1H 2025 (for comparison) | RM38.92 billion | +3% |
Spread evenly across EPF’s 18.5 million members, RM57.50 billion works out to roughly RM3,100 of investment income generated per member over six months. No member receives it in that form, but the figure gives a sense of the scale involved.
Equities did almost all the work
Combining both quarterly breakdowns published by EPF, one asset class accounts for the overwhelming share of the first-half result.
| Asset class | Q1 2026 | Q2 2026 | 1H 2026 | Share |
|---|---|---|---|---|
| Equities | RM20.34b | RM20.94b | RM41.28b | 71.8% |
| Fixed income | RM6.76b | RM6.91b | RM13.67b | 23.8% |
| Real estate & infrastructure | RM0.19b | RM1.30b | RM1.49b | 2.6% |
| Money market | RM0.44b | RM0.62b | RM1.06b | 1.8% |
| Total | RM27.73b | RM29.77b | RM57.50b | 100% |
Equities delivered RM41.28 billion, a 68% jump from the RM24.57 billion the same asset class produced in the first half of 2025. EPF attributed the gain to recovering global equity markets, easing concerns over energy prices, and sustained investor confidence in the artificial intelligence investment cycle.
Geography mattered as much as asset class. Total investment assets stood at RM1.54 trillion as at 30 June 2026, up roughly 18% from RM1.31 trillion a year earlier. Only 39% of that sits overseas, yet those holdings generated RM34.65 billion, around 60% of all first-half income.
EPF says the gains were front-loaded
The caution in the August statement was not new.
When EPF announced the 51% first-quarter surge in May, Ahmad Zulqarnain said portfolio managers had deliberately sold assets early in the year to lock in gains ahead of expected market turbulence, and told members to “not extrapolate this quarter’s result”.
He repeated the point in August, saying the fund had continued to front-load income through the second quarter as market and geopolitical risks remained elevated, and that “members should temper expectations” for the second half.
Higher income has already produced a lower dividend once
The gap between strong investment income and a higher dividend rate was demonstrated six months ago.
EPF’s distributable income for 2024 was RM75.5 billion, against a declared dividend of 6.30%. For 2025, distributable income rose 9.5% to RM82.7 billion, and the declared rate fell to 6.15%.
| Year | Investment income | Dividend (Konvensional / Shariah) | Total payout |
|---|---|---|---|
| 2023 | RM66.99b | 5.50% / 5.40% | RM57.81b |
| 2024 | RM74.46b | 6.30% / 6.30% | RM73.24b |
| 2025 | RM79.20b | 6.15% / 6.15% | RM79.60b |
| 1H 2026 | RM57.50b | To be declared around Feb 2027 | Unknown |
Investment income has risen every year in the table, yet the rate still fell in 2025. The explanation lies in how the rate is calculated. It is a fraction, and the base it is divided across has been growing faster than the income itself.
EPF’s total investment assets grew 12.8% in 2025 to RM1.409 trillion. Total members rose 11.5% to 18.09 million, and active members climbed 20.6% to 10.59 million. The same income pool is now divided across a substantially larger pile of members’ savings, which is why a 9.5% rise in distributable income still produced a lower percentage rate.
How investment income becomes a dividend rate
Investment income and the declared dividend are frequently treated as the same figure. Several steps separate them, and each one reduces the number.
1. Total investment income
This is the RM57.50 billion headline. It includes unrealised mark-to-market gains and losses, arising mainly from currency movements on foreign holdings. These are paper movements on assets EPF has not sold. Under long-standing policy, unrealised gains are not distributed as dividends.
2. Distributable income
This is the figure EPF pays out of, and it is not simply investment income minus unrealised gains. Gains marked to market in earlier years become distributable once the asset is finally sold. That is why EPF’s 2025 distributable income of RM82.7 billion exceeded its 2025 investment income of RM79.2 billion. EPF has not published a distributable income figure for 1H 2026, which is one reason the RM57.50 billion cannot be converted into a rate independently.
3. The declared rate
After operating costs and dividends already paid to members who withdrew during the year, the remainder is divided across the total daily aggregate balances of every member account. The EPF Board then declares the rate, typically at the end of February, with crediting around 1 March.
Membership is growing at a record pace
Alongside the investment figures, EPF reported a structural shift in its membership base that will shape dividend calculations for years.
| Indicator | 1H 2026 | 1H 2025 | Growth |
|---|---|---|---|
| Total members | 18,497,398 | 16,425,908 | +12.6% |
| Active members | 10,949,730 | 8,979,889 | +21.9% |
| New member registrations | 441,846 | 288,938 | +52.9% |
| Total employers | 645,207 | 619,662 | +4.1% |
| New employer registrations | 37,265 | 37,402 | -0.4% |
The 52.9% rise in new registrations over a single half-year is substantial, and a significant portion stems from mandatory EPF contributions for non-Malaysian citizen employees, which took effect from October 2025 wages.
The active-to-inactive ratio improved to 59:41, from 55:45 as recently as the third quarter of 2025. Wider coverage strengthens the fund and the retirement system, while also increasing the number of accounts sharing the same income pool.
On contributions, EPF collected RM33.87 billion in the second quarter alone, an 8.5% rise year on year. Across the first half, total contributions reached roughly RM71.9 billion, up about 11%. Voluntary contributions came to RM14.15 billion.
The i-Saraan scheme for informal and gig workers drew RM1.33 billion, up 15.7%, while close to 204,450 formal-sector members contributed above the statutory rate through i-Topup, an increase of 13.9%.
What members can still control
The declared rate is set by the EPF Board. Under existing EPF rules, several factors affecting individual balances remain within members’ control.
Timing of contributions affects the payout
EPF calculates dividends on daily aggregate balances rather than year-end balances. A voluntary top-up made in March earns close to ten months of dividend, while the same amount deposited in December earns very little for that year.
Akaun Fleksibel withdrawals reduce the dividend base
Withdrawing from Akaun Fleksibel lowers the daily balance immediately, reducing dividends earned for every remaining day of the year. All three accounts earn the same declared rate, so duration is the variable members influence. Our guide on what happens to your EPF when you switch jobs explains the 75:15:10 split in detail.
Tax relief of up to RM7,000 applies
EPF contributions combined with life insurance qualify for income tax relief of up to RM7,000, subject to changes announced by the government. Members topping up voluntarily should ensure this is reflected in their LHDN e-Filing.
RIA benchmarks give a clearer measure than the headline
Under the Retirement Income Adequacy framework effective January 2026, the targets are Basic Savings of RM390,000, Adequate Savings of RM650,000 and Enhanced Savings of RM1.3 million by age 60. By-age markers include roughly RM30,000 at 25, RM55,000 at 30, RM95,000 at 35 and RM148,000 at 40. A fuller breakdown is available in our money checklist for Malaysians before 30.
Government matching remains available for gig and informal workers
i-Saraan carries a government matching incentive of up to RM500 a year, capped at RM5,000 over a lifetime. i-Saraan Plus, introduced in January 2026 for e-hailing and p-hailing drivers, raises the match to up to RM600 a year with a RM6,000 lifetime cap. Voluntary contributions earn the same declared rate and qualify for the same tax relief as mandatory ones.
Where members tend to get it wrong
Budgeting around an undeclared dividend
The 2026 rate will not be known until around February 2027. Half-year income offers limited guidance on a full-year outcome, particularly in a year the fund has stated it pulled gains forward.
Treating a strong half as a reason to withdraw
Withdrawing to chase a headline return elsewhere forfeits compounding and dividend days on the amount taken out. The risk is not hypothetical: one 55-year-old reportedly spent RM700,000 in EPF savings within 21 days before returning to work. EPF has cleared 5% every year for the past decade, above prevailing Malaysian fixed deposit rates. For those building beyond it, here is where Malaysians are putting their money besides EPF.
Relying on circulating dividend forecasts
Analyst ranges for the 2025 rate spanned 5.6% to 6.4%, a spread wide enough to offer little practical guidance. In February 2025, the Second Finance Minister also declined to name a figure ahead of the announcement.
EPF earned RM57.50 billion in the first half of 2026, up 48% year on year, with equities contributing RM41.28 billion and overseas assets producing about 60% of total income.
The chief executive has twice said the result partly reflects gains deliberately pulled forward, and has asked members to temper expectations for the second half.
Investment income is also distinct from the amount EPF can distribute, and the rate depends on dividing that distributable sum across a savings base that grew 12.8% last year alone. In 2025, income rose while the rate fell from 6.30% to 6.15%. The 2026 rate is due to be declared around February 2027.
