EPF advocates for prudence in 2H26
The Employees Provident Fund (EPF) of Malaysia has advised members to expect lower returns in the second half of 2026 due to geopolitical risks and market volatility. Despite a strong first half, the fund is shifting toward a more cautious investment strategy.
Why it matters
As a major institutional investor, the EPF's outlook provides insight into regional economic stability and the impact of global market fluctuations on retirement savings.
PETALING JAYA: The Employees Provident Fund (EPF) has cautioned members to temper expectations for the second half of 2026 (2H26), saying the strong market opportunities that supported investment performance in the first half may not be repeated amid elevated market and geopolitical risks.
The fund’s chief executive Ahmad Zulqarnain Onn said the fund had capitalised on strong global equity markets while maintaining a disciplined, long-term investment approach.
Singing a cautious tune going into 2H26, he added: “Similar to the first quarter (1Q26), we continued to front-load income during the 2Q26 as market and geopolitical risks remain elevated.
“Our focus remains on delivering sustainable long-term returns, backed by a resilient portfolio.”
For context, front-loading income in institutional investing means actively realising and locking in investment gains early in the financial year, to secure returns and protect portfolios against anticipated market volatility or geopolitical risks later in the year.
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