Malaysia’s pension fund EPF records lower gross investment income in first quarter
KUALA LUMPUR, June 21– Malaysian pension fund Employees Provident Fund saw its total investment income fall 17.83 percent to 15.85 billion ringgit for the first quarter from a year ago, due to a significant decline in worldwide markets. The Russia- Ukraine war only exacerbated the situation, causing further uncertainty and volatility at a time when countries…
KUALA LUMPUR, June 21 (Xinhua) — Malaysian pension fund Employees Provident Fund (EPF) saw its total investment income fall 17.83 percent to 15.85 billion ringgit (about 3.6 billion U.S. dollars) for the first quarter from a year ago, due to a significant decline in worldwide markets.
EPF Chief Executive Officer Amir Hamzah Azizan said in a statement on Tuesday that the fund had a strong start in the earliest part of the first quarter, but the situation took a turn as global markets suffered a decline, causing lower returns in bonds and equities throughout the remaining quarter.
“The decline was attributed to a number of developments stemming from geopolitical tensions, impact from soaring inflation rates, and interest rate hikes. The Russia-Ukraine war only exacerbated the situation, causing further uncertainty and volatility at a time when countries are still struggling to recover from high debt burdens and stretched public finances from the pandemic,” he said.
The next quarter onwards will see the EPF taking a cautious stance to navigate the downside risks associated with post-pandemic recovery and the war in Ukraine.
The inflationary concerns, supply chain disruptions and tightening of monetary policy by major central banks are likely to continue to dampen both the equity and bond markets, according to the EPF.
Amir Hamzah, however, said the EPF remained optimistic about Malaysia’s growth prospects, especially following the reopening of economic and social sectors, which is expected to pick up as the year progresses on the back of heightened domestic and external demand, in line with the government’s growth projection of between 5.3 percent and 6.3 percent for 2022. Enditem