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Tuesday, August 2, 2022

No ‘specific’ assets sold for EPF withdrawal schemes, says minister

 

Finance minister Tengku Zafrul Aziz says EPF has sufficient assets to ensure funds are available for withdrawals and expenditures.

PETALING JAYA: The Employees’ Provident Fund (EPF) did not liquidate any specific asset to fund the i-Lestari, i-Sinar and i-Citra schemes as well as the final one-off RM10,000 special withdrawal facility last April.

In a written parliamentary reply, finance minister Tengku Zafrul Aziz said EPF had liquidated assets based on the “ordinary course of business” to cover the withdrawal schemes.

“Any purchase or sale of EPF’s assets is subject to investment portfolio rebalancing based on EPF’s strategic asset allocation (SAA) and is aimed at generating real income that can be distributed in dividend payments to members,” he said.

He said EPF’s management of asset liquidation was based on strategic asset allocation to reduce the impact of the withdrawal facilities on its portfolio.

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With assets worth over RM1 trillion, he said, EPF always ensured that it had sufficient funds to foot the costs of withdrawals and expenditures.

He was responding to Shafie Apdal (Warisan-Semporna) who asked the minister to list the specific domestic and foreign assets that EPF had to liquidate to fund the withdrawal facilities.

On March 14, Tengku Zafrul said EPF would have to liquidate more of its overseas assets while halting domestic investments to cover the cost of another withdrawal facility.

Two days later, Prime Minister Ismail Sabri Yaakob announced that Putrajaya would allow another special withdrawal of up to RM10,000 from EPF.

Payments for this facility were made from April 20. - FMT

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