Malaysia’s finance ministry says the Employees Provident Fund (EPF) investments declined in the first quarter mainly because US trade policies hit global stock markets.
Last month, Malaysia’s largest pension fund reported that it earned 18.31 billion ringgit (US$4.32 billion) of investment income in the first quarter, down almost 13% from a year ago.
An opposition lawmaker had asked whether the decline was because the EPF had to divest foreign assets to support the value of the Malaysian ringgit.
“The weaker performance was largely driven by rising global trade tensions and the unpredictable trade policies of the US,” the finance ministry says in a statement on July 29, responding to the lawmaker’s question.
According to the ministry, the EPF’s investment direction remains unchanged, with its strategic asset allocation serving as a guide to deliver sustainable outcomes over time.