EPF's RM75b for NYSE-listed mystery company?

By FMT Staff

KUALA LUMPUR: The government's decision to channel RM75 billion of public funds from the Employees Provident Fund to an “unknown foreign portfolio” in New York has got Indera Mahkota MP Azan Ismail worried.

"All we know at this point is that RM75 billion of EPF funds will be invested into a foreign portfolio. Who and what the portfolio is no one knows. It does not make sense.

"I'm guessing the investment is linked to the New York Stock Exchange (NYSE) where the Malaysian government has a company which is listed. But todate the company remains a mystery.

"We are concerned that the EPF funds will be injected into this company to save it because this mystery company cannot sustain itself," he said.

Azan also expressed concern that there may exist a pre-arranged channel in NYSE and Prime Minister Najib Razak's announcement was a sign to prepare the channeling of public money into this mysterious company.

"I am guessing that the EPF funds will be used as capital to boost this crony company and ensure it remains listed," Azan revealed to Suara Keadilan.

Deficit budget

He has also questioned the basis of the government's decision to expand the role of the “foreign potfolio” when Najib had in his budget asserted that the Malaysian government was encouraging private sector investment in the domestic market.

He said the government's decision to channel funds abroad was against its aspiration to entice private sector investment into the country and thus drive the high-income agenda.

Azan said what is also worrying is the deficit budget and increasing national debt of 18% from RM378 billion in 2009 to RM441 billion this year.

"I'm concerned that the government had only set aside 5% of the RM212 billion budget towards loan repayments. That means we are only paying RM10 billion towards the loans.

"On the RM441 billion debt, this translates to less than 2% of the budget... it's poor financial management and is not right," he said.