KUALA LUMPUR, Oct 21 – The Employees Provident Fund (EPF) will make a profit from the RM5 billion that it is to lend to the government investment agency, Valuecap Sdn Bhd, says Second Finance Minister Tan Sri Nor Mohamed Yakcop.
He said this was based on the past performance of Valuecap which has grown its portfolio from RM5 billion initially to RM8 billion now.
"I believe that they (Valuecap) will do well and EPF will certainly get their returns.
"Valuecap has done well. It has a good infrastructure, good staff that know better about the market and have a knowledge on what is happening (in the global market," he told reporters after giving a closing remark at the Khazanah Megatrends Forum 2008, here today.
He said this in response to Deputy Prime Minister Datuk Seri Najib Tun Razak's press conference this morning the government would borrow RM5 billion from the EPF to double the size of Valuecap to RM10 billion to support the local stock market.
Najib, who is also Finance Minister, said the fund was not part of the Consolidated Fund but was a loan from the EPF.
He also said the loan would not be part of the Budget 2009 allocations for spending announced last month.
Valuecap, established in 2003, is a fund management company which was created to invest specifically in the Malaysian equity market. It is jointly owned by Khazanah, PNB and Retirement Fund (Incorporated). – Bernama
Comments (18)
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Where is our Bank Negara Reserves and Foreign Reserves??
written by khari_jamaludah, October 21, 2008
written by khari_jamaludah, October 21, 2008
Even RM5 billion also have to DIG from EPF!! So how to develop the 5 super corridors when our federal govt dun even have RM5 billion??? All the contractors and also foreign investors doing and building for our corridors how to get paid-back for contruction work done??? Smells fishy here....unless the RM380 billion reserves in Bank Negara have already been use to bail out our cronies like GLCs and Khazanah....so where da hell did our RM380 billion went!! And where da hell did our tax payers money go???
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Use other means, please do not influence EPF to buy not performing campany!
written by chwong, October 21, 2008
written by chwong, October 21, 2008
To our new finance minister
Company that are not performing will not benefits from buying their shares from share market!!
Company are strong and successful, do not need your money!
Why not offer help by 'tax rebate' ?
Why not offer help to boost failing sectors by funding programs that can help them in future, e.g if CPO prices are falling, why not encourage Malaysia to buy CPO related by products ?
Buying shares, will benefits traders and the rich!... Imagine this, xyz has news that Najib will buy shares for Com****rz Bhd. xyz quickly buy shares, once EPF money are pump in .. xyz quickly sell all shares...
Company that are not performing will not benefits from buying their shares from share market!!
Company are strong and successful, do not need your money!
Why not offer help by 'tax rebate' ?
Why not offer help to boost failing sectors by funding programs that can help them in future, e.g if CPO prices are falling, why not encourage Malaysia to buy CPO related by products ?
Buying shares, will benefits traders and the rich!... Imagine this, xyz has news that Najib will buy shares for Com****rz Bhd. xyz quickly buy shares, once EPF money are pump in .. xyz quickly sell all shares...
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Valuecap? More like Value Pocket
written by Robotman, October 21, 2008
written by Robotman, October 21, 2008
I'm sure someone will increase the value of their "pocket" from this latest stunt (but definitely not the EPF investors like you and me). If Valuecap had really grown it's portfolio from RM5 billion to RM8 billion as claimed by our Kungfu Panda minister, then obviously the return was hardly felt by the dividends announced by EPF over the years. Well, another Malaysia Boleh story.
Perhaps someone somewhere will come out to support this latest move by the government and calling us pessimists and we are somehow holding our country back with such negative thinking but we were hit once in 1997/1998, remember? Oh yes, and gambling is a sin ;)
Perhaps someone somewhere will come out to support this latest move by the government and calling us pessimists and we are somehow holding our country back with such negative thinking but we were hit once in 1997/1998, remember? Oh yes, and gambling is a sin ;)
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This Is One of the Many Reasons Why Many Are Fed Up With UMNO - BN
written by Marcus Yap, October 21, 2008
written by Marcus Yap, October 21, 2008
I am tired, really tired of my hard earned money used to prop up useless companies.
C'mon, if these companies are any good at all, they would have excellent fundamentals and good assets backing.
We are not fools you know. We maybe powerless to do anything, even to protest, for fear the government will use the thuggish police to hammer the rakyat, BUT we will certainly remember this bullying us into using our money to save useless companies.
C'mon, if these companies are any good at all, they would have excellent fundamentals and good assets backing.
We are not fools you know. We maybe powerless to do anything, even to protest, for fear the government will use the thuggish police to hammer the rakyat, BUT we will certainly remember this bullying us into using our money to save useless companies.
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EPF turns Loan Shark?
written by Candidmen, October 21, 2008
written by Candidmen, October 21, 2008
I think it will be more convincing if this Tan Sri Nor were to pronounce to the EPF contributors that 5-billions loan granted to Genting Berhad will be ensured of profit! It's not for him to say that Valuecap being a Sdn Bhd is such a prominent Company that warranted them, all those unknown experts are the trusted master investors! They might be a two-dollar Companyand based on what goddamn reason should we trust them charge our life time savings to gamble in the share market?! Can they provide equivalent amount of 5-billion collateral to qualify for the loan and we expect the Government to clarify this to the public!
What if Valuecap is a fly by night cap and where are we going to claim back our principal less profit already pocketed by the greedy pigs?!
What if Valuecap is a fly by night cap and where are we going to claim back our principal less profit already pocketed by the greedy pigs?!
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(EPF) to-profit-from-valuecap-loan-says-nor-mohamed
written by dualties, October 22, 2008
written by dualties, October 22, 2008
Why touch EPF fund when ValueCap has all the resources and network to obtain the loan from CIMB? Based on past performance of VC does not necessarily meant that VC can perform better or equal its previous achievement. WE would prefer CIMB take the risk of portfolio investment or management. If the results predicted otherwise, only CIMB goes down but if the loan is extended to VC, the rakyat goes down!
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written by ma lay sia, October 22, 2008
written by ma lay sia, October 22, 2008
the government is always fond of back slapping and congratulating each other even before the chicks are out. it has happened many times before with billions being pumped into this or that and in the end losing huge chunks. this time it is with the people's retirement fund. it is starting to get worrisome. how can an ordinary mortal like nor mohamad assure account holders that the billions will be in safe, honest and cleans hands? remember, there are thousands of wage earners who break their backs or nearly drown themselves in their own sweat everyday just so that they may be able to save a few bucks for their twilight days.
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WHERE'S THE RM380.00 BILLION FOREIGN RESERVE?
written by ATSaari, October 22, 2008
written by ATSaari, October 22, 2008
Last I heard RM300.00 billion has been WIPED out during the recent US Financial turmoil bcoz most of the RM300.00 billion were in US Junk bond.
The RM80.00 balance are just digital money in some of the collapse and bankrupt US Banks.
So much of deception and lies all these days by the minister and the Gov.
The RM80.00 balance are just digital money in some of the collapse and bankrupt US Banks.
So much of deception and lies all these days by the minister and the Gov.
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Two facts don't add up
written by Lord Mountbatten, October 22, 2008
written by Lord Mountbatten, October 22, 2008
Here's what I don't get. Najib says that the RM$5 billion is a LOAN from EPF to ValueCap. Then Nor Mohamed says that "don't worry, ValueCap's track record in picking stocks is good. EPF will make money."
So, Finance Minister and Finance Minister 2 is contradicting one another.
If it's a loan, the performance of ValueCap's stock picking prowess should not matter. If it is truly a loan, then a loan document should clearly outline the term of the loan, the interest rate and payment schedules. Where's the loan document?
I suspect this is more "slush money" that is being siphoned out of the EPF. We all know that the Finance Minister is scandalous with his deals. This EPF "loan" should be scrutinized deeper.
The Rakyat, as beneficiaries of the EPF should demand an accountability report to be made, at the very least to explain the loan. If not, EPF shareholders should lodge a report with the police, etc. charging malfeasance on the part of the Board of Directors of the EPF and undue influe from the Finance Minister.
They've squandered all the petro money. Now they are raiding the Rakyat's pension to prop up their interests.
Something needs to be done to prevent this government from running amok.
So, Finance Minister and Finance Minister 2 is contradicting one another.
If it's a loan, the performance of ValueCap's stock picking prowess should not matter. If it is truly a loan, then a loan document should clearly outline the term of the loan, the interest rate and payment schedules. Where's the loan document?
I suspect this is more "slush money" that is being siphoned out of the EPF. We all know that the Finance Minister is scandalous with his deals. This EPF "loan" should be scrutinized deeper.
The Rakyat, as beneficiaries of the EPF should demand an accountability report to be made, at the very least to explain the loan. If not, EPF shareholders should lodge a report with the police, etc. charging malfeasance on the part of the Board of Directors of the EPF and undue influe from the Finance Minister.
They've squandered all the petro money. Now they are raiding the Rakyat's pension to prop up their interests.
Something needs to be done to prevent this government from running amok.
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written by Dump Citizen, October 22, 2008
written by Dump Citizen, October 22, 2008
May be the saying is true, when some action is been taken, people is sharing the cake. No action is been taken, every body gain nothing.
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written by pat ling, October 22, 2008
written by pat ling, October 22, 2008
Please don't miss the point. EPF has its own investment professionals to gauge what are good investments that yield the best returns with managed risks. So why can't we leave this decision to loan RM5B to this team of professionals to evaluate and recommend based on EPF's set guidelines? How can the FM decide for EPF?
Since EPF funds belong to its members, there should be absolute transparency. Why hasn't the FM disclosed the terms and conditions of this loan which should come under the jurisdiction of the EPF credit management & within EPF's credit policies?
Another question is the BIG "what if" scenario. What happens if ValueCap defaults? Is the loan adequately secured? And secured with what? Stocks & shares? You must be joking. When has EPF been involved in share financing as part of its revenue source? What if ValueCap defaults and the security is inadequate to settle the outstanding? Does it mean the government will bailout ValueCap? Also using taxpayers' money to cover taxpayers' money? If so, what a bloody scam!!! More importantly when that happens...whose head will be on the chopping block? The CEO of EPF? Or is it the FM, or perhaps the FM2? All these MUST be spelt out and made legal if you want to dig your hands into the EPF till.
We thought the MCA wants to be more vocal. How come so quiet? What has happened to all the recent thunder and lightning without rain? Can we presume UMNO and the other component parties in BN find such a move completely acceptable? So far only the opposition has voiced out against this loan from EPF.
Isn't it appropriate that the EPF members' views and concurrence be sought first? After all you are taking their money to do something that they may agree to. And isn't this basic courtesy...asking permission before taking away something that is not yours?
Since EPF funds belong to its members, there should be absolute transparency. Why hasn't the FM disclosed the terms and conditions of this loan which should come under the jurisdiction of the EPF credit management & within EPF's credit policies?
Another question is the BIG "what if" scenario. What happens if ValueCap defaults? Is the loan adequately secured? And secured with what? Stocks & shares? You must be joking. When has EPF been involved in share financing as part of its revenue source? What if ValueCap defaults and the security is inadequate to settle the outstanding? Does it mean the government will bailout ValueCap? Also using taxpayers' money to cover taxpayers' money? If so, what a bloody scam!!! More importantly when that happens...whose head will be on the chopping block? The CEO of EPF? Or is it the FM, or perhaps the FM2? All these MUST be spelt out and made legal if you want to dig your hands into the EPF till.
We thought the MCA wants to be more vocal. How come so quiet? What has happened to all the recent thunder and lightning without rain? Can we presume UMNO and the other component parties in BN find such a move completely acceptable? So far only the opposition has voiced out against this loan from EPF.
Isn't it appropriate that the EPF members' views and concurrence be sought first? After all you are taking their money to do something that they may agree to. And isn't this basic courtesy...asking permission before taking away something that is not yours?
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EPF plan is Big NO NO
written by cubi76, October 22, 2008
written by cubi76, October 22, 2008
There's one major question mark in EPF $5billion loan - What is the objective of the loan?
If the government's objective is to cushion the impact of the global financial crisis, this EPF loan is obviously not the solution.
In any crisis, the main victims are always the poor, the working class, pensioners, underprevileiged group, of which majority of them do not invest in stock market. These are the people that suffer most thus should be the main target of government help. Most of them face problems like rising living cost amid high inflation, unemployment, lack of affordable houses, healthcare, etc. And clearly the CEOs and Chairmen of public listed companies do not need any help from government for these.
Also, the government intervention into the market raises question of market distortion and market efficiency. Our government reasoned the need to market intevention and compared it to US and European bailout of some financial companies. Again, obviously both are very different.
In US and Europe, government's bailout is considered as only the last resort or in other words there is really no other option. And, the bailout is confined to only finance companies which if failed, would have huge impact on overall economy. Wherelse the plan laid out of Malaysia is to inject money to any 'undervalued' companies.
Instead of market intervention that is against the idea of free market, our government should explore other options to help people that really are in dire state.
Perhaps Australian government's recent plan to help pensioners, caretakers, first home buyers, etc should be given consideration.
The EPF plan is clearly meaningless, lack of focus, unproductive, and very market unfriendly.
If the government's objective is to cushion the impact of the global financial crisis, this EPF loan is obviously not the solution.
In any crisis, the main victims are always the poor, the working class, pensioners, underprevileiged group, of which majority of them do not invest in stock market. These are the people that suffer most thus should be the main target of government help. Most of them face problems like rising living cost amid high inflation, unemployment, lack of affordable houses, healthcare, etc. And clearly the CEOs and Chairmen of public listed companies do not need any help from government for these.
Also, the government intervention into the market raises question of market distortion and market efficiency. Our government reasoned the need to market intevention and compared it to US and European bailout of some financial companies. Again, obviously both are very different.
In US and Europe, government's bailout is considered as only the last resort or in other words there is really no other option. And, the bailout is confined to only finance companies which if failed, would have huge impact on overall economy. Wherelse the plan laid out of Malaysia is to inject money to any 'undervalued' companies.
Instead of market intervention that is against the idea of free market, our government should explore other options to help people that really are in dire state.
Perhaps Australian government's recent plan to help pensioners, caretakers, first home buyers, etc should be given consideration.
The EPF plan is clearly meaningless, lack of focus, unproductive, and very market unfriendly.
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written by gordon123, October 23, 2008
written by gordon123, October 23, 2008
OMG….seriously he’s our deputy finance minister? Dun even know the financial outlook now….
He said this was based on the past performance of Valuecap which has grown its portfolio from RM5 billion initially
to RM8 billion now.
Do u think past performance still count now when world $ crisis???????????? He victimize us…still thinking we r morons – katak dalam tempurung
He said this was based on the past performance of Valuecap which has grown its portfolio from RM5 billion initially
to RM8 billion now.
Do u think past performance still count now when world $ crisis???????????? He victimize us…still thinking we r morons – katak dalam tempurung
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mama spending
written by simon, October 23, 2008
written by simon, October 23, 2008
All.. mama is spending big.. and need LV, Prada... after all the lesson.. I think those who contribute their money in EPF (rakyat) who has voted their beloved BN's MP.. is the most stupid rakyat... now their own MP is sucking their own money to allow MAMA spending.. buying old junk Heli....and he will be the PM... the joke of the century..
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great job fruitcake
written by hks, October 23, 2008
written by hks, October 23, 2008
no need to be angry, this is malaysia. UMNO > u all
whatever they said is the truth, if u dont like it u can get out of here or u can make big fuss about it and get slammed in the face with ISA
whatever they said is the truth, if u dont like it u can get out of here or u can make big fuss about it and get slammed in the face with ISA
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EPF to profit from Valucap
written by Walter Green, October 23, 2008
written by Walter Green, October 23, 2008
It is very sad that teh DPM ahas made this move to "borrow" money from EPF.I think it is morally wrong
and the very fact that the DPM is making a grave mistake for the people of Malaysia.Please DPM,don't
do this as the repercussion would be astronomical from the rakyat. I pray you would have the decency to respect teh rakyat's point.
and the very fact that the DPM is making a grave mistake for the people of Malaysia.Please DPM,don't
do this as the repercussion would be astronomical from the rakyat. I pray you would have the decency to respect teh rakyat's point.
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This minister lost multi-billions when he was in Bank Negara
written by Wakdoh, November 13, 2008
written by Wakdoh, November 13, 2008
This minister lost multi-billions of the country money when he was in Bank Negara due to currency trading. Do you think the rakyat would trust this minister a penny ?
It is the biggest sin in life to simply use EPF money to pop up the market. The answer to good stock market is to manage the economy well. If they do not even understand this simple rule, do they fit to be ministers ?
We demand transparency and accountability, rule of law, respect the EPF money is sacred.
If BN/UMNO continue to be such arrogance, by-passing rule of law, lack the respect for a civil, open society, continue to have ministers with third grade mentality, we shall campaign in a big way to send all of them to oblivion in the next election.
Watch out.
It is the biggest sin in life to simply use EPF money to pop up the market. The answer to good stock market is to manage the economy well. If they do not even understand this simple rule, do they fit to be ministers ?
We demand transparency and accountability, rule of law, respect the EPF money is sacred.
If BN/UMNO continue to be such arrogance, by-passing rule of law, lack the respect for a civil, open society, continue to have ministers with third grade mentality, we shall campaign in a big way to send all of them to oblivion in the next election.
Watch out.
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If dont know economy or stock tradings....ask lah Tony boy or employ some MBA pakar to help out lah.....dont act smart to the kampung folks.......or maybe they r even better than these monyets.
Valuecap...? Semivalue kut.....no fundamental and claimed doing well.......put money into the stocks market and get swung by people like soros......instead of helping the small cap Co's...! Fishy that even in such a conditions, they even have the heart to sapu duits into pockets....no bad...no bad.
Congrats if BN is still the only option for u...!