EPF TO FURTHER INVEST OVERSEAS

EPF TO FURTHER INVEST OVERSEAS

To hasten divestment of equity holdings in GLCs

Ee Ann Nee

Monday, March 29th, 2010 12:52:00

KUALA LUMPUR: The Employees Provident Fund (EPF) has invested six per cent of its fund size on overseas equities and efforts to invest in countries abroad will continue in the next few years.

Its chief executive officer Tan Sri Azlan Zainol told reporters this morning that although the government has directed the EPF to hasten the divestment of its equity holdings in government-linked companies (GLCs) to make the capital market more attractive to foreign fund managers, the move cannot be done in a rush.

"Our investment is portfolio management where we look at the best interest of our members to get the best returns for them. The sellout has to be done properly," he said, adding that there is no timeframe for the move.

Azlan, who was speaking at the opening ceremony of the technical seminar "High Performance in Social Security by Innovation, Change Management and Risk Management, said EPF will be looking at investing 10 per cent of its shareholding stake in public-listed GLCs in the United States, Europe, Australia and Southeast Asia.

It was reported last week that the government directed Khazanah Nasional Bhd and EPF to hasten the divestment of their equity holdings in GLCs to make the capital market more attractive to foreign fund managers.

Analysts said the continuous move to reduce government holdings would attract more international investors who can bring added value to corporate shareholdings as well as make Bursa Malaysia more attractive to foreign fund managers.

It will also increase private sector driven liquidity on the bourse through less government participation and in the process increase shareholder diversity particularly from foreign funds.

On a different note, EPF's chairman, Tan Sri Samsudin Osman, said that Malaysia has yet to fall under the category of an aged nation, the process of aging has already begun.

"Although it is forecasted to take place in 10 years' time, Malaysia should prepare itself for the effects of an aged nation," Samsudin said this morning.

The percentage of the elderly, currently at 4.6 per cent, is expected to increase to 11.2 per cent by year 2020, the year Malaysia aims to become a developed nation, Samsudin said.

"The challenge faced by policymakers and social security organisations is to draw an innovative blueprint on social protection for the less privileged and the elderly. The plan should possess global appeals given the background of regional economic integration and the mobility of professionals and workers," he added.

(http://www.mmail.com.my/content/31701-epf-further-invest-overseas)