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.