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We propose that the Malaysian Employees' Provident Fund, EPF, sets up a special department to explain to its members its activities and investment of RM182.32 billion. Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong made this proposal during the debate on the Bill to amend the Employees Provident Fund Act 1991 on 26 July, 2001. | |||||||
| The Employees Provident Fund, EPF, is the biggest organization for statutory savings. It gives the Malaysian Government a cheap source of fund. However, it has to show more transparency. The Employees Provident Fund (Amendment) Bill, 2001, enables the EPF Board to receive any funds from any retirement scheme or plan relating to an employee remitted by any other person or the employee's employer, withdrawal to purchase or build a second house and withdrawal by an employee under the Statutory and Local Authorities Pensions Act 1980. BY 30 June, 2001, EPF has a total assets of RM 185.74 billion contributed by over 10 million members. It is the biggest statutory body for savings. Hence, its activities attract attention. Although its investment panel claims to invest in safe and stable organizations, the public feel that some of the investment may not be safe and stable. For instance, it invests in Time dotCom and other companies supported by the Government. After the initial public offering, the shares of Time dotCom go down. On paper, EPF loses tens of millions of Ringgits. Even | |
MTUC, which is a member of the EPF Board, threatens to demonstrate against some of EPF's activities such as the annuity scheme. Its Board has five representatives from the Government, the employees and the employers respectively as well as three from the professionals. DEPARTMENT FOR TRANSPARENCY Now, it invests RM 182.32 billion: RM 67.55 billion in Malaysian Government securities, RM 30.04 billion in loans and corporate bonds, RM 41.61 billion in equity, RM 41.87 billion in money market and RM 1.23 billion in properties. It lends to sectors like energy, telecommunications, transport and infrastructure. It buys shares from 309 companies. Among them are over 10% equity in Cycle and Carriage Bintang, D Perdana, EON, KFC, Land & General and United Plantation. Is the EPF fund misused to bailout companies in difficulty? As the economy fluctuates, there is a risk in investment. We hope that EPF investment panel is cautious in all activities. If it can set up a special department with a web portal to explain to its members how it invests, it may slowly improve its transparency. Dr Tan Seng Giaw | |||||
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