EPF adheres to SOP in overseas investment ventures

ALOR STAR: The Employees Provident Fund (EPF) must adhere to a stringent standard operating procedure (SOP) before being allowed to invest overseas in view of its status as the country’s main retirement fund trustee.
Finance Deputy Minister Datuk Othman Aziz said in this regard, EPF had to make sure its investments were conducive and matched its business plan to ultimately benefit the contributors in the form of dividends.
"EPF and Khazanah Nasional have long invested abroad, not just in the United States, because it is part of their corporate strategy to maintain a balanced investment portfolio," he said after visiting the Sungai Kelonchor/Anak Bukit flood mitigation project here today.
He was commenting on Parti Pribumi Bersatu Malaysia (PPBM) president Tun Dr Mahathir Mohamad’s statement about the recent investments in the United States made by Khazanah and EPF.
Prime Minister Datuk Seri Najib Tun Razak recently announced EPF and Khazanah Nasional Bhd's plans to increase their investments in the US, and Malaysia Airlines Bhd's decision to buy 16 Boeing airliners.
To date, EPF has invested nearly US$7 billion (RM29.3 billion) in equity in the United States, while Khazanah Nasional, which has an office in Silicon Valley, has invested about US$400 million in high-tech companies.

Othman said both agencies had to be shrewd in seeking investments locally, in Asean, and internationally, which not only covered stock purchases but also mega project ventures and bond purchases.

He dismissed the claims by certain quarters that Najib was only extending unnecessary help to the United States through EPF and Khazanah Nasional’s business moves.
"Who are we to help the US, certainly not with RM100 billion when its economy has reached trillions... what is important is that we seize investment opportunities that can bring good returns.

"On average, for instance, if the local returns (EPF) are three to 4%, and another 11% is then added from overseas returns... this is the amount that would be given back to contributors in the form of annual dividends," he said.
On claims by certain quarters that Najib was afraid to step on US soil because he might be prevented from returning by the Department of Justice, Othman said it was just gibberish created by resentful parties.
“They were simply jealous that the Prime Minister received a personal invitation from President Donald Trump,” he said. Malaysia and the US have been strategic trade partners for years and share common goals in terms of security, investment and the economy.

Othman said that as a responsible government, Malaysia tries to get as many foreign investors into the country as possible, while also making overseas investments.

“We have achieved 60 years independence, certainly we should not just wait for other people to invest in our country,” he said. — Bernama