Rahman Dahlan to critics: Have you not been reading the news?

Malaysia’s current and future investments in the US is a matter of public knowledge and was merely reaffirmed by Prime Minister Najib Abdul Razak during his meeting with president Donald Trump, a minister said today.

Responding to Najib’s critics, BN strategic communications director Abdul Rahman Dahlan said the Employees Providence Fund (EPF) had come up with various statements on diversification of its overseas investments, as part of efforts to minimise their risks and maximise returns.

“It is as if these Pakatan (Harapan) leaders have not been reading the news for the past few years.

“For instance, they were shocked to learn that the EPF had invested US$7 billion in equities in the USA and has plans to invest up to another US$3 billion,” he said in a statement.

As of the first quarter of this year, Abdul Rahman pointed out that EPF’s total invested assets had amounted to RM747 billion, whereas the total value of all the companies listed on Bursa Malaysia stands at around RM1.7 trillion.

From the figure, he said EPF’s overseas investments accounted for 29 percent of its total investment assets and contributes 37 percent to its total investment income as of the first quarter of this year.

“In fact, in the past two years' dividend announcements, the EPF had specifically stated that good returns from their overseas investments had allowed EPF to deliver good dividends despite a slower domestic market.

“Hence, it is shocking that our local opposition politicians are seemingly unaware of these developments,” he stressed.

Najib had during his meeting at the White House with Trump announced that the EPF would increase its US investments by between US$3 billion and US$4 billion "to support (US) infrastructure redevelopment."

This was on top of an agreement that the Malaysian aviation industry would purchase between US$10 billion and US$20 billion worth of US-made passenger planes and aircraft engines.

Referring to the purchase agreement, Abdul Rahman said it was already widely reported since July last year that Malaysia Airlines had signed a deal to purchase up to 50 Boeing 737 MAX jets, with orders made for 25 jets and rights to purchase 25 more in a deal valued at US$5.5 billion at list prices.

He also quoted media reports last month that MAS, due to the success of its restructuring plans, was already deep in negotiations to explore new routes through the purchase of 30 more new Boeing 786 or Airbus jets.

“MAS purchases of new planes is not news at all. However, it seems to have caught opposition politicians by surprise.

“Instead of praising the success of MAS' restructuring, these politicians are questioning MAS’s motives as if the long-planned and widely-reported purchase of new planes had been a sudden decision,” he said.

Given the reported developments, Abdul Rahman said Najib had done nothing wrong in reassuring Trump on Malaysia’s understanding of trade and investment ties between both countries.

He also urged Harapan leaders to refrain from commenting on international diplomacy as they do not seem to understand its intricacies and sensitivities.

Among others, Harapan leaders in a joint statement today said that Malaysia seemed to have offered more than RM60 billion to the US, but got nothing in return.

Selangor Menteri Besar Mohamed Azmin Ali, meanwhile, said that Najib should not mortgage the country's economic well-being just for a photo opportunity with Trump.

Responding to Azmin, Youth and Sports Minister Khairy Jamaluddin today said such a statement only revealed the former’s shallow understanding of Malaysia’s investment flow, as a country that practices the concept of open economy.

“The time has come for the opposition to practice politics based on ideas and intellect, not to gain popularity through rhetorics or (inciting) hate.

“Our investments in the US or other major global economies are for the benefit of the people and the country,” said the Umno Youth chief.

In raising concerns over the latest reported deals with the US, critics also argued that the billions of Ringgit were invested overseas at a time when budget cuts are made to various domestic projects. - Mkini