The Auditor-General’s Report 1/2025 stated that the nine subsidiaries suffered losses of RM76.51 million in 2022 and RM49.76 million in 2021.

Kwasa Europe Sà rl recorded the highest loss of RM158.42 million in 2023, followed by Ameen Direct Equity I, LP (RM25.61 million), Kwasa Europe-I Sà rl (RM14.40 million), Naungan Sentosa Sdn Bhd (RM11.88 million), Kwasa Utama Sdn Bhd (RM8.61 million), YTR Harta Sdn Bhd (RM2.70 million), Kwasa Singapore Duo Pte Ltd (RM1.36 million), PPNK-Harta Sdn Bhd (RM840,000) and Common Icon Sdn Bhd (RM390,000).

The report said three of the subsidiaries – Kwasa Europe, Kwasa Europe-I and Naungan Sentosa – suffered losses because of the capital structure of the subsidiaries, which was largely in the form of shareholder loans.

“EPF, as the sole shareholder of the companies, gets a return in the form of income interest, which is used to pay dividends to contributors.

“Meanwhile, Ameen Direct Equity I is a newly established fund (set up in 2021), with a long-term investment focus and has not yet generated enough income to cover operating expenses,” it  said.

According to the A-G’s report, EPF was audited without reprimands, but it recommended that federal agencies strengthen revenue generation efforts to continue operations based on continuous efforts and reduce reliance on government grants.

The report also recommended that federal agencies review the direction and business plans of subsidiary companies that have suffered losses for three consecutive years and have not provided proper returns.

EPF owns 55 subsidiaries, 34 of which recorded profits in 2023.