ALOR STAR: The Employees Provident Fund’s (EPF) move to expand its investment in the United States is a corporate strategy move and has nothing to do with Malaysia doing the world superpower a favour.
Deputy Finance Minister Datuk Othman Aziz said claims that the government is doing the US a favour by supporting the EPF investment proposal is completely baseless.
He pointed out that the US economy size is worth between US$3 trillion and US$4 trillion and EPF is merely looking at investment opportunities to generate profits, which later distributed to its members in the form of dividend.
"The proposed investment is the EPF's corporate strategy to balance its domestic, Southeast Asia and the international investment portfolio.
"If you compare the EPF plan to further invest between US$3 billion and US$4 billion in the US and the country's economy size is worth between US$3 trillion and US$4 trillion, you will understand that it is an investment move.
"How could the investment been accused of doing the US a favour while in reality the retirement fund is also benefiting from the investment?," he asked.
Othman added that it makes sense for the EPF to invest in bigger market than Malaysia, such as the US to generate returns.
He added that all investment decisions by the EPF are subjected to stringent process to protect the interests of its 14 million members.
"The EPF has a very stringent procedures where every investment proposal is strictly scrutinised in terms of risk and return," he said after visiting Sungai Kedah/Anak Bukit flood mitigation project here today.
Othman, who is also Jerlun member of Parliament was commenting on the Opposition criticism on government move to support the EPF plan to increase its investment in the US.
It was reported that the EPF had invested close to US$7 billion, in terms of equity, in the US and intends to invest US$3 billion and US$4 billion to support infrastructure redevelopment in the US.
Othman added that the government investment arm, Khazanah Nasional Berhad had also underwent the same stringent procedure before investing in high tech sector in the US.
“Khazanah is not only investing to generate profit but at the same benefiting from technology transfer... There are some investments which are beyond the equity ownership, such as the purchasing of bond for infrastructure development," he said.
He brushed off the claim by Kedah Parti Pribumi Bersatu Malaysia (PPBM) information chief claim that Datuk Seri Najib Razak recent visit to the US was part of a propaganda to show that the US government is lending its support to the Prime Minister to halt the US Department of Justice (DoJ) against 1Malaysia Development Bhd (1MDB).
He said the claim was a mere political ploy by the opposition to deny Najib's successful visit to the US at the invitation of President Donald J. Trump.