EPF’s financial results revealed a dropped by approximately 20% year-on-year in 2022

Recent report and data from Employees Provident Fund (EPF) reported a 19.7% decline in its total gross investment income to RM55.33 billion for 2022, down from RM68.89 billion in 2021, as evidenced from lower by weaker performance across all its asset classes.

A major part of the total gross income comes from equities asset class which generated RM30.54 billion, or 55%, down 25.6% representing RM41.06 billion recorded in 2021. Overseas equities which is approximately 10% of the income is the main driver of returns under this asset class.

Fixed income generated RM18.19 billion or 33% of the EPF’s total gross income for 2022 which is an 11.3% year-on-year YOY decline from RM20.53 billion recorded in 2021.

Real estate and infrastructure portfolio’s income came in at RM5.56 billion last year, down 12.6% YOY from RM6.36 billion in 2021.

RM145 billion was withdrawn by members under four withdrawal schemes, namely i-Lestari, i-Sinar and i-Citra and the special withdrawal facility over the period. This will affect liquidity of EPF and efforts have been put in place to mitigate the withdrawal liquidity.

EPF have revealed that the decline in total gross investment income for 2022 is in line with global funds dropped due to the challenging environment, including slower global growth and global high inflation rates.

Also with the tightening of monetary policies by many major central banks to cool in inflationary pressure further contributed to the drop in performance. The current investments are undergoing constant challenging environment coupled geopolitical instability, with Russia’s invasion of Ukraine and the tensions between the US and China.

In managing operations, financial statements provide the base for strategic business and operational decision making which is demonstrated by EPF.

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