Tuesday, March 17, 2009

Scrutinize EPF's Performance

Reported here:

Despite earning a record RM20 billion in gross income in 2008, a cautious Employees’ Provident Fund has declared a 4.5 per cent dividend for its members and blamed the lower rate of returns on the global financial crisis.

The state pension fund had declared 5.8 per cent in 2007 when it just earned RM18.29 billion. In 2008, its gross income jumped 9.36 per cent for EPF to record its highest ever earnings of RM20 billion.

EPF was previously used to "bail out" companies which were not performing that well e.g. Time Telekom. It loaned RM5 billion to Valuecap Sdn Bhd for its activities to buy Malaysian stocks much to the consternation of the general public.

I believe it is time for account holders to demand a full disclosure of EPF's performance and portfolios of investment. Despite being a government linked company, EPF is accountable to account holders like myself. We should be empowered to demand a change of its management board if the company does not help to protect our saving and investment.

It is time a mechanism is proposed to scrutinize the performance of EPF.


amoker said...

Totally agree.

Give us data as well on the bonus given to the fund managers and directors. Since the people is given less, they should too.

Anonymous said...

It's basic economics. EPF's fund size will grow from the continued contribution of members plus compounded returns over the years. Hence they SHOULD have increasing gross income every year from an increasing asset base. Returns for all asset classes dropped from the 2nd half of 2008. It is not unreasonable to expect a lower dividend rate unless the EPF is running a Ponzi scheme!

I would like to declare that I do not work for the EPF, but just providing a possible explaination from a layman's point of view.

ernest said...

Hi khoo

Until and unless the EPF is fully independent (I mean really fully independent) you don't expect the unexpected to happen.

donplaypuks® said...

Just heard the news that ASM has declared 6.25% dividend.

So, EPF had better come clean on this dismal dividend and tell us what they have invested, what they have lost, how much and what they have had to write down.

heads will have to roll!

If Temasik and S'pore GLC's can be open with their $100 billion losses, EPF should not hide behind secrecy rules. EPF does not belong to the Govt. Therfore it has to be to be tranparent and accountable to its members to a much, much higher degree!!

Anonymous said...

Kay Peng

It's unbelievable and for many years I have asked myself why ASN's
6.25 sen returns are better than EPF?
Any siphoning or hidden hands involved??
The members should Korek!Korek!Korek!!!