# EPF: The Employees Provident Fund as an Institution

> The EPF is Malaysia's largest mandatory retirement fund and the country's most influential institutional investor, with investment assets reaching RM1.25 trillion at the end of 2024.

- Category: companies
- Language: en
- Status: published
- Updated: 2026-07-28
- Canonical: https://negaraku.md/en/companies/epf-as-an-institution

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Every time a private-sector worker in Malaysia receives a payslip, a portion of their income flows into a single institution that now holds more than RM1.25 trillion. That institution is the Employees Provident Fund, or EPF.

It is not merely a savings account. The EPF is Malaysia's largest mandatory retirement fund and, at the same time, the country's most influential institutional investor — a major shareholder in many companies listed on Bursa Malaysia and a steady buyer of government bonds.

## What is the EPF and who governs it?

The EPF is a statutory body established on 1 October 1951, originally under the EPF Ordinance 1951. Its legal framework is now the EPF Act 1991, which places the fund under the jurisdiction of the Ministry of Finance.

Its core task is simple but immense: to collect mandatory retirement savings from private-sector workers and their employers, invest that money prudently, and pay members an annual dividend. Each member holds a personal account, and savings can be withdrawn at retirement age or under certain conditions.

Overall management rests with the EPF Board, supported by an Investment Panel that provides strategic investment direction. The EPF's Chief Executive Officer is Ahmad Zulqarnain Onn.

## How big is the EPF really?

At the end of 2024, the EPF's investment assets reached RM1.25 trillion — up more than 10% from RM1.13 trillion in 2023. The fund covers 16.22 million members, including 8.78 million active members.

The table below summarises the institution's profile at the end of 2024:

| Indicator | Value (end of 2024) |
|---|---|
| Investment assets | RM1.25 trillion |
| Annual asset growth | more than 10% (from RM1.13 trillion) |
| Total members | 16.22 million |
| Active members | 8.78 million |
| Domestic investment allocation | 63% |
| Overseas investment allocation | 37% |
| Total investment income 2024 | RM74.46 billion |

## How does the EPF invest members' money?

As an institutional investor, the EPF spreads its funds across several asset classes. In 2024, equities were the main income engine, followed by fixed-income instruments such as Malaysian Government Securities.

The contribution of each asset class to 2024 investment income (a total of RM74.46 billion) and its return on investment:

| Asset class | % of total income | Return (ROI) |
|---|---|---|
| Equities | ~67% | 9.90% |
| Fixed income | ~29% | 4.27% |
| Real estate & infrastructure | — | 5.13% |
| Money market instruments | — | 1.89% |

Although 63% of assets are invested domestically, global investments contributed more than half of income in 2024: income from global markets reached RM37.44 billion versus RM37.02 billion from domestic markets — evidence that international exposure plays an important role in the fund's returns.

## How much dividend does the EPF pay each year?

This is the figure members most anticipate at the start of each year. For 2024, the EPF declared a 6.30% dividend for Conventional Savings and 6.30% for Shariah Savings — a total payout of RM73.24 billion and the highest rate since 2017.

The history of annual dividend rates (source: official EPF open data at data.gov.my):

| Year | Conventional Savings | Shariah Savings |
|---|---|---|
| 2020 | 5.20% | 4.90% |
| 2021 | 6.10% | 5.65% |
| 2022 | 5.35% | 4.75% |
| 2023 | 5.50% | 5.40% |
| 2024 | 6.30% | 6.30% |
| 2025 | 6.15% | 6.15% |

One important distinction between the two types of savings:

- **Conventional Savings** are guaranteed to pay at least 2.50% per year under the EPF Act 1991.
- **Shariah Savings**, first offered around 2017, carry no minimum guarantee — their returns depend entirely on the actual performance of the Shariah-compliant portfolio.

## Why does the EPF matter to Malaysia's economy?

The EPF's size means its decisions reverberate far beyond individual accounts. As a large holder of government bonds, it helps finance national spending. As a major shareholder in many listed companies, it influences corporate governance and the stability of the local stock market.

The EPF is also part of a broader ecosystem of government-linked funds alongside Khazanah Nasional and Permodalan Nasional Berhad (PNB) — but its mandate differs: it safeguards the retirement savings of ordinary people, not the nation's strategic capital or retail unit-trust funds.

## What's next

- To see how the EPF acts in the stock and bond markets, read [The EPF as an investor](/companies/epf-as-investor).
- Compare its mandate with two other government funds: [Khazanah Nasional](/companies/khazanah) and [PNB](/companies/pnb).
- To understand the market in which the EPF invests, see [Bursa Malaysia](/companies/bursa-malaysia).
- Check the official EPF website at kwsp.gov.my for the full annual report and the latest dividend declarations, as asset and dividend figures are updated every year.

## Sources

- EPF investment assets reach RM1.25 trillion, 63% allocated to domestic market — https://www.thevibes.com/articles/news/105422/epf-investment-assets-reach-rm1.25-trillion-63-allocated-to-domestic-market (The Vibes)
- EPF Investment Assets At RM1.25 Trillion, 63 Pct Invested In Domestic Market — https://www.bernama.com/en/news.php?id=2397953 (Bernama)
- EPF Dividend Of 6.30 Pct For 2024 Is Highest In Seven Years -- CEO — https://www.bernama.com/en/news.php?id=2397979 (Bernama)
- Special Report: Dispelling aspersions surrounding EPF's impressive 6.3% dividend for 2024 — https://theedgemalaysia.com/node/747537 (The Edge Malaysia)
- EPF Dividend Increase to 6.30% for 2024 with RM73.24 Billion Payout (memetik angka pengumuman KWSP) — https://www.ajobthing.com/resources/blog/epf-2024-dividend-6-30-percent-rm73-24-billion-payout (AJobThing)
- Annual EPF Dividend (open data catalogue) — https://data.gov.my/data-catalogue/epf_dividend (data.gov.my / Employees Provident Fund)

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