Malaysia EPF’s local investment focus will test returns

Malaysian Prime Minister Anwar Ibrahim’s decision to ask Employees Provident Fund (EPF) to raise its domestic investments to 70% this year could pose some asset allocation challenges for EPF as it tries to generate adequate returns for its members. A significant chunk of its investment income is currently derived from overseas investments, so a pivot to domestic investments could affect returns negatively, according to some experts. “EPF is already the largest investor in Malays…