KUALA LUMPUR, Oct 21 — Finance Minister Datuk Seri Najib Razak said today the government will borrow RM5 billion from the Employees Provident Fund to fund government investment agency Valuecap Sdn Bhd.
"It's not part of the Consolidated Fund. It's a loan from EPF," said Najib.
The Deputy Prime Minister pointed out that the loan would not be part of the Budget 2009 allocations for spending announced last month.
Yesterday, Najib announced a host of measures to boost the economy and protect Malaysia from the effects of the global financial turmoil.
These included spending more on the service sector to cushion expected declines in Malaysia's exports.
Also, RM5 billion would be injected into Valuecap to buy undervalued stocks.
Valuecap was set up five years ago to invest in undervalued firms.
The government hopes the injection will offer much needed support for laggard blue-chip stocks in the local bourse.
The Finance Minister is expected to announce more measures on Nov 4 when he winds up the debate on the Budget in Parliament.
So far he has offered little details and did not spell out today the mechanics of the loan from EPF.
The government has already said it plans to slash costs by reviewing spending on government projects.
Today, Najib was asked if the cost cutting would affect the controversial acquisition of the Eurocopter helicopters for the Royal Malaysian Air Force.
"All projects will be reviewed but defence projects are to be assessed differently.
"We are looking at all projects, not just defence projects. Security projects cannot be measured on the economic yardstick. And that applies to the police as well," said Najib.
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There goes our money.
written by frankie, October 21, 2008
written by frankie, October 21, 2008
Why not take from the commission of submarine and helicopter, why must it always from EPF?
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Why?
written by Jessy, October 21, 2008
written by Jessy, October 21, 2008
Sigh... there goes more of our hard-earned money...
Why not use the over-estimated money from Budget 2008 to invest? Why don't they take a loan from "Bank Negara"? Why must it be EPF?! Because I really DON'T intend to invest in "undervalued stocks" or any companies which invest in "undervalued firms".
Why not use the over-estimated money from Budget 2008 to invest? Why don't they take a loan from "Bank Negara"? Why must it be EPF?! Because I really DON'T intend to invest in "undervalued stocks" or any companies which invest in "undervalued firms".
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written by ray, October 21, 2008
written by ray, October 21, 2008
Bcoz d commission of d submarine n helicopter alr goes to our ex F minister,
Lousy BN Gov
Lousy BN Gov
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EPF now involved
written by hijk17, October 21, 2008
written by hijk17, October 21, 2008
When Valuecap was set up in 2002, there were a lot of concerns from the public that the government is using EPF money to fund the investments.
EPF in fact issued an official press statement to counter any allegations that they were involved. Now, openly the MoF is saying that they have doubled the valuecap fund from RM5 bil to RM10bil within a day with the help of a RM5 bil loan from EPF??!
What is this. another flip flop?
EPF in fact issued an official press statement to counter any allegations that they were involved. Now, openly the MoF is saying that they have doubled the valuecap fund from RM5 bil to RM10bil within a day with the help of a RM5 bil loan from EPF??!
What is this. another flip flop?
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Najib must surely be getting kickbacks
written by MightyDonkeyKong, October 21, 2008
written by MightyDonkeyKong, October 21, 2008
Najib won't simply abuse OUR money if there's nothing in it for him.
I bet Valuecap is giving him a hefty kickback to steal RM5 billion from the rakyat and giving it to a useless company.
Looks like UMNO's arrogance hasn't abated. They can simply abuse our money and abuse our trust at their whims and fancy because if we ever demonstrate we're not happy with this sort of move, the police is ever at hand to whack us up or arrest us under ISA.
I bet Valuecap is giving him a hefty kickback to steal RM5 billion from the rakyat and giving it to a useless company.
Looks like UMNO's arrogance hasn't abated. They can simply abuse our money and abuse our trust at their whims and fancy because if we ever demonstrate we're not happy with this sort of move, the police is ever at hand to whack us up or arrest us under ISA.
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valuecap..
written by Valuecap, October 21, 2008
written by Valuecap, October 21, 2008
EPF already established for many years, i believe EPF investment team can perform better without government intervention. With borrowing of 5B to valuecap.. i think our money will wash aways. how much is the interest for the borrowing?? BLR +xx% or just less then 1% interest.
Valuecap just form since 2003. what can they do?? money is coming so easy & free from government's instruction.
This our supremacy government" new PM"
Valuecap just form since 2003. what can they do?? money is coming so easy & free from government's instruction.
This our supremacy government" new PM"
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why,,,it must be the stock market,
written by tony, October 21, 2008
written by tony, October 21, 2008
come one,,why the stock,market,,why look after ,the rich,,,,waht do u mean undervalued,,stock,
and why our hard earn money,,
and why our hard earn money,,
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You call that a plan?
written by Richard, October 21, 2008
written by Richard, October 21, 2008
What kind of imbecile came out with idea to use our hard-earned retirement fund to be used by the govt to prop up the economy? To think that the MOF 1 actually approves the plan is to say he is a bigger imbecile. I certainly do not want such a person to lead this country. With the global economy spiralling downwards and no one knows for sure where the bottom will be, how can MOF 1 even use our retirement as a gamble to prop up the economy. A british trained economist, my foot! Scrap that idea or else you will see yourself being scrapped in the next GE!
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EPF should declare loan to the Government
written by Cheated, October 21, 2008
written by Cheated, October 21, 2008
There has been no transparency on the loan. Did EPF approve this via governance process or did the politician Najib ordered EPF is spite. The Gov't doesn't own the funds. It belongs to ALL workers in the nation.
EPF please declare this publicly!!!
EPF please declare this publicly!!!
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Mr
written by Pete, October 21, 2008
written by Pete, October 21, 2008
I, as a contributing member of EPF do not agree to lend the RM5b to valuecap, who invests in UNDERVALUED stock. EPF is supposed to invest in those stock to make money and to protest and expand its members savings for old age. Without any guarantee and mention of how the loan would ever be paid back to EPF, our hardearned savings are as good as gone already.
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EPF rakyat's hard earned money
written by swipenter, October 21, 2008
written by swipenter, October 21, 2008
Leave our EPF money alone. Rightfully the money belongs to the rakyat and the rakyat has no bloody say in how the money should be invested. Dont we have enuf of using EPF monies to bailout the GLCs during Mahathir's administration.
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...
written by Damocles, October 21, 2008
written by Damocles, October 21, 2008
Singapore invested the people's money in an investment arm and every year, the people receive a few hundred or even a thousand dollars in return.
Here, what do we have?
Here, what do we have?
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loan & dividend
written by FCPO trader, October 21, 2008
written by FCPO trader, October 21, 2008
this loan will served as much as the bond issued by the government, the term might be different. It will be repaid by the govt as the bond must be redeemed. Most people demanding a good dividend from EPF, and dividend must be from a profit generated from the investment. Where else the EPF can invest, local stock market? local bond? a loan to authorised parties, a little bit of global exposure? then what? and each year everyone is whining about 5% dividend from EPF. This loan will be part of the diversified investment structure of the EPF. 20% will be exposed to the equity market. EPF itself is the major player of the local scene. EPF will get hurt if market is continuously weak, and we will get a less dividend this year. Think....
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interest at 1% per month
written by EPFowner, October 21, 2008
written by EPFowner, October 21, 2008
Please do pay for the interest to our EPF.
interest at 1% per month ( as per personal loan and credit card charges)
interest at 1% per month ( as per personal loan and credit card charges)
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UMNO needs the money!
written by Malaysian, October 21, 2008
written by Malaysian, October 21, 2008
Lots of UMNOputra companies need the funds because they are going bankrupt as usual. The EPF is mostly non-Bumi money, as UMNOputras are mostly Civil servants who don't pay much taxes. So.....
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It's eerie idea.......
written by Candidmen, October 21, 2008
written by Candidmen, October 21, 2008
Again, it's a tactic of "Rob Peter for Paul"! I rather prefer to hear from DSAI and definitely he will concur with the public demands to slash the Eurocopter deal, used the funds to finance the financial market wouldn't it be a more resounding idea?! What Najib implied to mean, when asked whether cost cutting will affect the Eurocopter deal, was, upfront have been paid by Eurocopter and there's no way to refund?! When Australia can shelved all their Euro15-billions military budget for rescuing their financial market and banks, what said by Najib the defense projects cannot be measured with the economic yardsticks, was considered hocus pocus spelling out from a mouth of unprofessional who knows nothing about economy, and did he study economy to qualify for his job?!
One shall not forget, Dharna Harta was established under Finance Ministry to rescue the falling property markets and bank equities and have they proven to be accountable and effective?! After they bailed out the properties from the entangling banks and so-called corporate sector, who were the end beneficiaries and how much had we the public being benefited from a machinery fueling on our hard earned public funds?! Will this Valuecap merely another cap to appease the running down crony associated Corporates, which are already on the brink of collapsing?! It's eerie to think of letting our life-earned EPF monies in such a hand to manipulate!
One shall not forget, Dharna Harta was established under Finance Ministry to rescue the falling property markets and bank equities and have they proven to be accountable and effective?! After they bailed out the properties from the entangling banks and so-called corporate sector, who were the end beneficiaries and how much had we the public being benefited from a machinery fueling on our hard earned public funds?! Will this Valuecap merely another cap to appease the running down crony associated Corporates, which are already on the brink of collapsing?! It's eerie to think of letting our life-earned EPF monies in such a hand to manipulate!
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" What's the real role of Valuecap? "
written by carmanio, October 21, 2008
written by carmanio, October 21, 2008
http://www.malaysiakini.com/letters/24634
from the above earlier report, why is EPF now back-tracking from its own position? kow-towing to the powers-that-be??
for crying out loud, someone, please do SOMETHING!!
from the above earlier report, why is EPF now back-tracking from its own position? kow-towing to the powers-that-be??
for crying out loud, someone, please do SOMETHING!!
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EPF managers, grow a pair!
written by LSH, October 21, 2008
written by LSH, October 21, 2008
It would've been far easier for the fund managers to shift RM5bil allocation in their portfolio from bonds to stocks. Is it so hard to give out orders to your dealers to start buying stocks in the 100+ index members? Who are the managers are at Valuecap.. and more importantly, to whom are they related to?
Najib, you lost my confidence in your first act.
EPF fund managers, you have failed to protect your investors once again. You guys are a disgrace to investment management professionals everywhere.
Najib, you lost my confidence in your first act.
EPF fund managers, you have failed to protect your investors once again. You guys are a disgrace to investment management professionals everywhere.
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Who the hell would want to invest in a undervalued stock?
written by Visionary, October 21, 2008
written by Visionary, October 21, 2008
This is fantastic!!! Yes yes take RM5Bil split against the blue chip counters to show performance. Great move!!!! is just like taking the public's baby milk bottle and give it to the 30 years old overgrown useless piss of shit and immature adult because he don't have any mentality to find his own food. Great Job!!!! Now that's capitalishit!!!
Globally financial industry has been hit badly and yet our intelligent govt is pumping more money into this GLC. Don't they have their own retained earnings that has been monitor annual AGM, Strategies to improve valuation n such? Global financial is correcting itself and yet we are saving those whom we gave a chance and still can't self sustain itself over all these years. Those who is self sustaining and making a contribution to the country has been slaughter again and again. Haven't you guys have enough already.
Why do we need to invest or re-look at our MOD, is not like we going to war every or being threaten by other countries, I will understand if our MOD is investing is efficient search n rescue equipments by buying Choppers and submarine is totally useless piece of shit ( Try thinking buying a car and not driving it). Who the hell we're going to attack...Singapore or Indonesia? With ISA still exist I believe the public will sooner or later getting a piece from all those outdated bullets that they are storing.
More interesting, investing in undervalued stock. Please lar!!! Companies that can't survive please let them get the hell out of here and make way for new innovative companies to dominate and build a legacy.
Globally financial industry has been hit badly and yet our intelligent govt is pumping more money into this GLC. Don't they have their own retained earnings that has been monitor annual AGM, Strategies to improve valuation n such? Global financial is correcting itself and yet we are saving those whom we gave a chance and still can't self sustain itself over all these years. Those who is self sustaining and making a contribution to the country has been slaughter again and again. Haven't you guys have enough already.
Why do we need to invest or re-look at our MOD, is not like we going to war every or being threaten by other countries, I will understand if our MOD is investing is efficient search n rescue equipments by buying Choppers and submarine is totally useless piece of shit ( Try thinking buying a car and not driving it). Who the hell we're going to attack...Singapore or Indonesia? With ISA still exist I believe the public will sooner or later getting a piece from all those outdated bullets that they are storing.
More interesting, investing in undervalued stock. Please lar!!! Companies that can't survive please let them get the hell out of here and make way for new innovative companies to dominate and build a legacy.
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EPF & Govt hand held plan
written by Visionary, October 21, 2008
written by Visionary, October 21, 2008
Why not, instead of putting RM5bil, expose 80% EPF funds. EPF Declare bankrupt and screw the public. After all we don't have a say, don't we?
Then you guyz (whoever you are lar) use 5% of the funds invest in your own undervalued stock/company and channel all your funds to Swiss as part of an investment plan, tells the public is a bad investment and losses everything and keep 75% in your own pocket. Better still, tell us "We will continue to support our economy and all our GLC to match international standards" or continue invest in this "SPV" called Bakun project and also tells the public we will have a shortage of energy in 2011.
Then you guyz (whoever you are lar) use 5% of the funds invest in your own undervalued stock/company and channel all your funds to Swiss as part of an investment plan, tells the public is a bad investment and losses everything and keep 75% in your own pocket. Better still, tell us "We will continue to support our economy and all our GLC to match international standards" or continue invest in this "SPV" called Bakun project and also tells the public we will have a shortage of energy in 2011.
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...
written by lynn, October 21, 2008
written by lynn, October 21, 2008
I do not want my EPF money to be borrowed by the government for this purpose. I am already in my fifties and my EPF savings are the only savings I possess. At such an age, my husband and I still have to work from dawn to dusk to put food on the table and to finance our only 2 children's education. We earn our EPF savings literally through sweat and toil and Najib Razak and the BN government have absolutely no god-given right to use our money as they please. How many times have you used our hard toiled money to bail out GLCs??? Why don't you direct deal for national purchases such as submarines and helicopters and save the billions in commission paid out? I am really, really upset with our BN government!
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The Daylight Robbery
written by deVillaine, October 21, 2008
written by deVillaine, October 21, 2008
So that is his life saving bullet to answer our ecomnomy downturns............my butt.....!
Its worse than a robbery now........he doesnt even have to ask....just take our hard earned money and wash it into the drain............i thought he is the moron......but we r the bigger fools now......!
The moron FM will only kill more.......in Malaysia...AAARRRgGGgggggggggggg...........
sigh!
Its worse than a robbery now........he doesnt even have to ask....just take our hard earned money and wash it into the drain............i thought he is the moron......but we r the bigger fools now......!
The moron FM will only kill more.......in Malaysia...AAARRRgGGgggggggggggg...........
sigh!
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written by swipenter, October 21, 2008
written by swipenter, October 21, 2008
In LKT's blog someone is asking for the performance and track record of ValueCap. Yes we have not heard anything about ValueCap since its inception. What happened to its investments? Everything is so opaque regarding ValueCap. No accountability at all and now borrowung another RM5bil of our money.
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Loan & Lost
written by nisha, October 21, 2008
written by nisha, October 21, 2008
I don't agree with FCPO trader. Why EPF? Has Valuecap proven to take a loan of RM5 bil? Even 1 mil, I still ought to think "Where's the justification?"
The reason why rakyat support Pakatan is because they hate how our Ministry from Barisan carry out their duty. Look at our Highways (toll concessions), IPP Agreement - (many undeclare issues).... why should Barisan be worried about exposing the deals if it's beneficial to the people? Because Barisan always take advantage of the Rakyat. Perhaps, this may also get me into ISA...
I sincerely hope there will be a change of Government.
The reason why rakyat support Pakatan is because they hate how our Ministry from Barisan carry out their duty. Look at our Highways (toll concessions), IPP Agreement - (many undeclare issues).... why should Barisan be worried about exposing the deals if it's beneficial to the people? Because Barisan always take advantage of the Rakyat. Perhaps, this may also get me into ISA...
I sincerely hope there will be a change of Government.
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Thank you BN supporters...
written by marbl3s, October 21, 2008
written by marbl3s, October 21, 2008
Thank you for ruining people's life. You have selected the best party that will lead Malaysia to poverty.
To hijk17: There is a possibility that the top guns from EPF that approves this loan is getting a slice of the people's money. There is a possibility.
Even before Najib becomes a PM, he is already seeking ways to suck the public dry. There is no easier way for them to take money from anyone except from the public.
To hijk17: There is a possibility that the top guns from EPF that approves this loan is getting a slice of the people's money. There is a possibility.
Even before Najib becomes a PM, he is already seeking ways to suck the public dry. There is no easier way for them to take money from anyone except from the public.
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Thank you BN supporters...
written by marbl3s, October 21, 2008
written by marbl3s, October 21, 2008
Thank you for ruining people's life. You have selected the best party that will lead Malaysia to poverty.
To hijk17: There is a possibility that the top guns from EPF that approves this loan is getting a slice of the people's money. There is a possibility.
Even before Najib becomes a PM, he is already seeking ways to suck the public dry. Aie...
To hijk17: There is a possibility that the top guns from EPF that approves this loan is getting a slice of the people's money. There is a possibility.
Even before Najib becomes a PM, he is already seeking ways to suck the public dry. Aie...
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Wrong reform measures....
written by Eillom, October 21, 2008
written by Eillom, October 21, 2008
Putting the issue of EPF loaning Valuepac money aside, what is the point of this whole exercise?
How can Valuecap buying "undervalued" shares be a measure to bolster the economy? Using EPF money to buy shares is simply artificially inflates the value of shares. Additionally, how is this "manipulation" of "undervalued" share prices going to affect the real economy which concerns the public? Are we bailing out those who got their fingers burnt when buying shares at their highs?
If shares are undervalued, why isn't Warren Buffett or any financial guru for that matter telling the whole world to buy Malaysian shares? Buffett is telling investors to buy American shares but I can't recall any mention about Malaysia. Furthermore, an average investor can invest in the shares individually.....the government shouldn't be doing the job of fund managers and research analysts especially when analysts have sell and underweight ratings on these companies.
Fact is, the government is trying to prop up the Malaysian market. What they fail to realise is that investors tend to bypass Malaysia as they find local companies unattractive for various reasons including liquidity and fundamentals. When these issues which are highlighted by research heads and Bursa get rectified, we should begin to see a pick up in the stock market. This doesn't need RM5bn. Just some common sense.
How can Valuecap buying "undervalued" shares be a measure to bolster the economy? Using EPF money to buy shares is simply artificially inflates the value of shares. Additionally, how is this "manipulation" of "undervalued" share prices going to affect the real economy which concerns the public? Are we bailing out those who got their fingers burnt when buying shares at their highs?
If shares are undervalued, why isn't Warren Buffett or any financial guru for that matter telling the whole world to buy Malaysian shares? Buffett is telling investors to buy American shares but I can't recall any mention about Malaysia. Furthermore, an average investor can invest in the shares individually.....the government shouldn't be doing the job of fund managers and research analysts especially when analysts have sell and underweight ratings on these companies.
Fact is, the government is trying to prop up the Malaysian market. What they fail to realise is that investors tend to bypass Malaysia as they find local companies unattractive for various reasons including liquidity and fundamentals. When these issues which are highlighted by research heads and Bursa get rectified, we should begin to see a pick up in the stock market. This doesn't need RM5bn. Just some common sense.
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written by Pat Ling, October 21, 2008
written by Pat Ling, October 21, 2008
Can some one out there advise us whether the government can can deploy funds from the EPF to such a purpose without going through some approval process? After all the EPF monies belong to the rakyat and there are too many "what ifs" that can happen to the outcome of such lending.
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Strenghten checks and balances
written by Lord Mountbatten, October 21, 2008
written by Lord Mountbatten, October 21, 2008
As far as I am aware, the EPF is supposed to be an independent entity charged with providing a "pension" for Malaysians.
So, what authority does the Finance Minister have in directing the EPF to make "investments," etc.?
What if the EPF takes a loss as a result of the Finance Minister's orders? Is the Finance Minister liable to the EPF? Does the Finance Ministry guarantee the loan? What type of company is ValueCap?
Why is the people's money being spent by the Finance Minister?
All these questions need to be answered by the Finance Minister as well as the government.
However, this sets a very, very bad precedence of what to expect from Najib! He's high handed in the way he does things. He's second generation blue blood, so he's entitled to do what he wants with the country . . . . or at least that's what he's thinking.
If he comes to power, together with Yucksin, Malaysia is in for a very, very bad stretch!
So, what authority does the Finance Minister have in directing the EPF to make "investments," etc.?
What if the EPF takes a loss as a result of the Finance Minister's orders? Is the Finance Minister liable to the EPF? Does the Finance Ministry guarantee the loan? What type of company is ValueCap?
Why is the people's money being spent by the Finance Minister?
All these questions need to be answered by the Finance Minister as well as the government.
However, this sets a very, very bad precedence of what to expect from Najib! He's high handed in the way he does things. He's second generation blue blood, so he's entitled to do what he wants with the country . . . . or at least that's what he's thinking.
If he comes to power, together with Yucksin, Malaysia is in for a very, very bad stretch!
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Enough is the limit!
written by Candidmen, October 21, 2008
written by Candidmen, October 21, 2008
UK the Welfare State which provides all sorts of welfare for their citizens ranging from free medical benefits, free educational grants, free unemployment benefits and so on.....
To the contrary, the patriotic Malaysians who have striven hard for the Nation and expected to be self-reliant on their hard saved EPF monies as the only means to sustain their retirements, only to find that the government is abusing their hard-earned public funds, yet to be squandered by the ever greedy and corruptible immoral politicians! Until all have been depleted, how are we going to live on?!....Mob will then rule?
To the contrary, the patriotic Malaysians who have striven hard for the Nation and expected to be self-reliant on their hard saved EPF monies as the only means to sustain their retirements, only to find that the government is abusing their hard-earned public funds, yet to be squandered by the ever greedy and corruptible immoral politicians! Until all have been depleted, how are we going to live on?!....Mob will then rule?
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...
written by Pat Ling, October 21, 2008
written by Pat Ling, October 21, 2008
What are the commercial terms of this loan? They should not be any less than the commercial terms of standard bank loans. And what are the securities for the loan? Don't tell us it's against the stocks and shares of these undervalued companies! Whose head will fall if the loan go bust? All these must be disclosed and made public. After all EPF funds are the public's money!
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ignoring the rakyat
written by amoker, November 21, 2008
written by amoker, November 21, 2008
no matter how much one can argue and ask for protection, this government just dish out and do what they want.
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