EPF Quarterly Income Increased

The Employees Provident Fund (EPF) announced its investment portfolio ended the third quarter at RM712.5 billion netting an income of 12.32 billion ringgit up 46% from three months earlier and up 29% from the same quarter the previous year. 

Shahril Ridza Ridzuan, Chief Executive Officer in the news release said, “Our overseas investment continued to enhance our returns during to the quarter while non-cash impairment also recorded a significant reduction in last year.” 

The improvement in equity prices in North Asia and other developed market countries have attributed to the increased assets as at September 30th 2016 comparatively up RM9.54 billion from the corresponding same quarter last year and outperformed the RM684.5 billion as at December 31st, 2015. 

Shahril however remains cautious to a continued performance and challenging, following the ringgit devaluation against the dollar with the uncertainties of regional and global market. The ringgit's decline will provide foreign exchange-related gains on the EPF's overseas holdings but it will raise the cost of further investments abroad.

EPF Pulls Out. Will Other Statutory Bodies Follow Suit?

Shares in Felda Global Ventures Holdings Sdn Bhd (FGV) fell 8 sen, or 4.94 percent in the morning session of trading on December 23rd, to RM1.54 with 6.98 million shares traded after the Employees Provident Fund (EPF) pulls out and no longer has any stake in FGV. 

The divestment made by EPF have certainly raised concerns over the viability investments by other statutory bodies. According to Bursa Malaysia records, EPF was allotted a 5.06 percent stake or 184,746,000 shares in FGV during its market debut on June 28, 2012. Based on the figure, its initial investment would amount to some RM840.5 million. 

A month after the IPO, FGV’s shares peaked at RM5.55 per share. By September the same year, EPF has increased its stake in the company to 6.8 percent, although FGV’s share prices was starting to slide.

Within two years, FGV’s share price halved following a drop in commodity prices and downstream losses. By March this year, Reuters data however showed that EPF only held a 3.85 percent stake in FGV and was ranked as the seventh biggest shareholder. 

The fund’s announcement on Tuesday, as such, demonstrated that there was a crisis of confidence in FGV. Previously, EPF had voiced concerns over the FGV’s investment decisions, including the abandoned proposal to acquire Indonesian palm oil firm High Eagle at a high price (exceeds 130% of the current value). 

Despite the move, in an internal statement published, EPF confirmed that the RM6.5 billion loan taken by Felda Holdings Bhd (Felda) is not in default. “Felda continues to service the loan in accordance with the agreed terms and conditions,” it said. 

EPF members are urged to verify the facts with EPF and not misled with reports or comments made over the social or online media, says the EPF statement.

EPF Members Are Government 'Cronies'?

The Oppositions never runs out of bullets against the BN led government. They have often than not shielded themselves as the rakyat’s defender; fielding statements or questions in their quest underneath their dark true intentions/agenda. 

In the recent populist statement, Lim Guan Eng; the Penang Chief Minister and DAP secretary-general has accused the PLUS Highway Berhad as the government crony looking for extraordinary profits was refuted by the Works Minister; Datuk Seri Fadillah Yusof. 

Lim’s accusation implied that the 14.4 million EPF members as cronies is very spiteful as a rakyat’s representative. The EPF owns 49 percent shares of the highway concessions and the government with 51 percent shares. Most definitely, EPF is NOT a single share owned by private ‘cronies’. 

The privatization of the Plus Highways Berhad in the year 2011 has rationalized the overall toll structure of all highway concessions in the Plus Group thus prevented unnecessary toll hikes. 

EPF’s ownership of the highways are part of other investment that allowed its members a yearly steady returns on the maturity of the cash generating asset, simultaneously alleviate the rakyat’s mobility woes. 

Through the privatization initiatives, the tolls collected are spend on yearly operating costs of the 986.5km highways. Let alone, the maintenance of the federal and state roads, yearly road tax (RM2.4 billion) collection could not suffice the related cost of expenditures. 

What a shame! Lim Guan Eng has shot his own foot denying the situation, dragging the EPF members of his mired political fame. His actions is far from being responsible as a member of The House of Representative.