KUALA LUMPUR, July 5 — The Employees Provident Fund (EPF) will continue to be flexible and guided by its asset allocation strategy to ensure long-term gain on its investments.

Chief executive officer Datuk Seri Amir Hamzah Azizan said although market volatility remained high and geopolitical issues have evolved over the past years, EPF’s stance would continue to be guided by market sentiment and its strategies.

"The market trend may be downwards but there are still opportunities for us to make money. As long as we pick the right stock and we can trade it accordingly, we can make money.

"The key for EPF is, it must be flexible, it must be nimble so that we can manage,” he told reporters at the International Social Well-being Conference 2023 (ISWC 2023) here, today.

Asked about EPF’s investment strategy upon the weakening of ringgit, Amir Hamzah said that EPF’s asset allocation strategy has been determined and valid for three years.

He said there are some trading ranges that EPF could move within the market, using the capacity that it has.

"The key is to remember that EPF is a long-term institutional investment. We must take the opportunity and invest accordingly.

He said EPF made short and long-term investments based on its strategy but as a long-term institutional investment, it doesn’t dramatically shift its investment strategy.

Amir Hamzah said currently, 64 per cent of its total asset allocation is invested locally, which is in the ringgit base, while overseas investments would depend on the assessment of whether it should sell assets, if the investment has realised its value, or invests in other assets according to the return that it is getting.

"It is part and parcel of our normal business condition. If we’re selling some assets we think market prices are good at that time and if we like any new investment, we will put money into it,” he said.

Meanwhile, he said EPF is encouraging its members, who are 55 years old, to withdraw their savings periodically instead of a lump sum withdrawal to help the people to continue saving and have enough savings when they retire.

"In terms of social protection, this (lump sum withdrawal) may not be a wise way because their savings may not reach the end of their life.

"We want to organise these periodic withdrawals on a monthly basis, enough to live on and the remaining money in the EPF will continue to be compounded, giving them better returns,” he said.

He said the withdrawal amount is up to the members and they could voluntarily request this kind of withdrawal.

"At the moment, we still need further discussion with the government whether this can be done on a mandatory or voluntary basis, or also introduce this to new members,” he added. — Bernama