EPF's money safe with ValueCap

The government promised that the RM5.1 billion loan from EPF's money would not be used to pay ValueCap defaulting loans due to their losses. Those losses are unfortunate and are act of god.

The government assures that losses suffered will not affect EPF contributors as the government is paying for them and the RM5.1 billion loan from EPF is guaranteed by the government. The government has money to pay any losses as they collect tax and they also have massive income from Petronas. The Muslims should not be unduly concerned with the tax money as they pay zakat. As to Petronas money, they also should not be unduly concern as Petronas money is reaped from the ground and it was god who planted those oil underneath the earth to pay for those losses.

The good news is ValueCap often pays dividends to their shareholders even though they suffered massive losses. So the shareholders - Pension Trust Fund, Khazanah and PNB should be happy and delighted.

As such, the shareholders are prepared to refinance ValueCap so that they can make timely loan interest payment; thus ensuring that they are AAA-rated.

The government also said they are using Petronas money to finance all those losses and expenses and development costs including eurocopters, fungi-infected hospitals, MRR2 repair, Parliament leaks and defects rectification and Umno elections.

Petronas has contributed to RM62.8 billions of the government's revenue this year which equals 44% of the total revenue.

Though we expect Petronas' revenue to shrink this year due to the lower crude oil price, Petronas should be able to continually contribute to substantially to pay for the excesses and losses. We must thank god that we will continually have oil and gas underneath. We must also thank Mahathir for money politics which have help to pay for the higher cost of living. We must thank Pak Lah too because he has raised thew price of fuel to RM2.70 and also lowered it down to RM2.15. We have high hope on Najib to contribute to the effective management of the nation's economy.

MAS Sells, EPF Buys

MAS to sell academy to EPF for RM145m

March 10 2007

Malaysian Airline System Bhd (MAS) has agreed to sell a property that houses its training academy and information technology centre to the Employees Provident Fund.The sale of the property in Kelana Jaya, including the freehold land the building is on, will be for RM145 million.

MAS said it would use the cash to fund working capital and the deal was part of its turnaround plan to sell non-core assets.

It will then lease the same property from the EPF for five years, with an option to renew the duration of the lease for a further five years. The proposed disposal is expected to be completed by year-end.

“The proposed leaseback is to give us more flexibility in choosing what are the best options for office consolidation in the future. “This can help to maximise the yield and, at the same time, achieve the best price possible,” the statement said.

MAS will make a gain of RM43.2 million after subtracting the property’s value of RM99.2 million in its books and another RM2.6 million in expenses for the deal. An independent valuation of the property in October last year valued it at RM145 million.

MAS bought the property in 1989 for RM133.1 million.

If you owned a building and sells it to cash out, then why would you lease it back from the buyer for 5-years?

MAS said this is to maximise yield? Ha,ha,ha, This is the first time I have learn financial management where I am told that the way to maximise yield is to sell your assets and then lease it back from the buyer.

Why don't MAS consider REIT (Real Property Investment Trusts)? Would it makes more commercial senses?

Interesting fact is that MAS bought the property at RM133mil, had a book value of RM99mil, now claims that they stand to gain RM43mil after selling the asset at RM145mil.

EPF Monthly Withdrawal Scheme Failed Miserably

EPF


Only 1,138 opted to keep their savings and withdraw only annual dividends.

Last year, fewer than 1% opted to keep their savings with the fund, prefering to withdraw their entire savings on reaching 55.

The EPF appears to have failed in its 8-year bid to encourage retiring members to withdraw their savings monthly.

EPF deputy chief executive officer Rusma Ibrahim said some withdrew their savings thinking they could manage their money well.

Rusma: “I think they are not always correct.”

“Members had no reason to withdraw all their savings if they had paid off their mortgages, were in sound health and had no children pursuing tertiary education."

Rusma said the EPF encourage members to keep their savings with them as they could earn an average of RM500 a month for 20 years if they leave an amount of RM120,000 with the fund.

$500 earnings a month and that works out to be $6,000 a year income from EPF if you have $120,000 savings with EPF. It's 5% per annum dividend; uncompounded!!!

Dear Rusma, 5% and you think EPF is doing a good job for contributors?

I will put my money in a Bond Fund anywhere, at any Bank, and I will earned between 7 to 10% annually, and on top of that, I will receive bonus and yearly dividends.

In the 80s, EPF were paying between 8-9% dividends; now, for the last 7 years, they are paying 4-5%; are they still saying they had been competent?

I had known how the system works. They would work their investments to a set target of 6% ROI and then, the system will hybernate so that it would not surge to ROI of 8-10%. Once the 6% is achieved, say within 4-6 months of the financial year, then most of the assets parked at volatile higher-return/risk investments (such as equity, forex and foreign equity tradings) will be re-allocated and park at risk-free investments such as government-guaranteed securities or projects, Cagamas, (100% secured investments). The investment system in EPF is generally capable to achieve 6% within a six month period. If EPF allows the system to invest effectively, they would possibly achieve something like 8% to 10% ROI. Then, the following year, the system will have to be benchmarked at the higher ROI, and the investment managers will be stressed to perform and achieve at higher ROI, or at least to repeat similar performance. Of course, investment in higher return derivitives will be exposed to higher risk, which is a phobia within the institution. At such, EPF had chosen the easier way to maintain stability and safe returns on investment. They are basically risk-averse.

They call it BALANCE SCORECARD - don't score too high (play safe in order to be safe); Otherwise, they will be in trouble the next year as they will have to maintain a higher level of returns.

This is what Malaysians learnt - BALANCE SCORE-SHEET; NOT SCORECARDS!

Read an article from aisehman.org and maybe, EPF should come up with a better explanation:

On paper, [EPF's] roughly RM2.3 billion investment in listed Rashid Hussain Bhd is currently valued at about RM115 million , according to people familiar with the matter, making the investment one of the worst in the EPF's history. [Wall Street Journal: Another chill hits Malaysian business climate; subscription required]

At the crux of the affair is the dire financial health of RHB Bank's ultimate holding company, Rashid Hussain Bhd, in which Utama and the EPF own 32.8% and 31.7% stakes, respectively. Malaysian bankers say the Rashid Hussain group of companies urgently needs at least RM3 billion of fresh capital from its main shareholders to meet government capital-adequacy requirements.

The problem: The EPF would have to pour more of public funds into an already disastrous investment in order to bail out the group.

EPF Boost for Wife

EPF- boast

EPF boost for wives

The Employees Provident Fund will now allow husbands to make contributions to accounts under their wives' names.

This move is "SUPPOSELY" aimed at providing the housewives some financial security in their old age and also prevent them from being left in the lurch should their spouses desert them. EPF said it would embark on a campaign to educate housewives on this provision so that they could encourage their husbands to make the contributions.

EPF deputy chief executive officer (management and organisation development) Rusma Ibrahim said that one benefit of being EPF members was that the housewives would earn better returns in the form of dividends compared to the interest from bank savings accounts.

The objective of EPF is that they are concern that wifes should have enough savings to enable them to live out their golden years.

Women's groups hailed the move by the EPF, saying it was the first time a major government agency was recognising the hard work put in by homemakers. Wanita MCA chief Datuk Dr Ng Yen Yen said this was part of the government's gender sensitisation programme. Sisters in Islam executive director Zainah Anwar said the EPF's initiative was a good way to recognise and value the women's work at home.

COMMENTS:

INTERESTING! CARING! IDEALISM! FANTASY......

EPF boasted that they gave better returns as compared to FIXED DEPOSIT INCOME FROM BANKS.....wow!!!!!!

I am surprised; EPF is benchmarking their ROI against FD's rate; the lowest rate of RISK-FREE RETURN for investors.

As Malaysians, investments definitely deserve better returns; you don't compare investments with FD's interest rate. At least, it should be comparable with bond funds' return on investments, or if possible, with returns from investment funds such as Templeton, Berkshire Hathaway, or maybe, Public Mutual.

But EPF's dividend is 4.5% to 5% only! Wouldn't it be wiser for husband to contribute to some other investment instruments, other than the EPF?

Mediocrity breeds mediocrity; and we can boast of it! That's Malaysia BOLEH!

Deputy Culture, Arts and Heritage Minister Datuk Wong Kam Hong described the EPF's move to allow men to contribute to their non-working wives' accounts has been described as an ingenious idea.

Do you know what is an ingenious idea?

Is it ingenuity of taking us for a ride, or

Is it ingenuity that Malaysians are fools and they have no better way of getting ROI of 4.5%pa?

Are you fuckingup our intellectuality?

EPF'S DIVIDEND FOR 2004

EPF dividend

12th. February 2005, NST reports:

The NST reported today that EPF members can expected a slightly higher dividend for the fiscal year 2004. It was reported that the dividend could be 4.75%. A fund manager said that a 4.75% dividend should be reasonable given the fact that the bulk of EPF’s assets (approx. RM240 billion overall fund size) were in fixed asset income.

MTUC congress delegates in the last month’s triennial conference had criticized and questioned the EPF’s handling of employees’ contributions, which they said had resulted in dividends dropping in recent years. “We want to emphasize our stand that EPF should not be used to rescue companies that are likely to go bankrupt,” MTUC president Syed Shahir Syed Mohamud said.

For the record, EPF dividend for the period between 1983 to 1994 was around 8% and the worse dividend was in the year of 2002 which was 4.25%. In 2003, EPF declared 4.5% dividend. So, if they declare 4.75%, it means EPF had improved, is it?

With a new CEO and the introduction of the KPI and Balance Scorecard system, I wonder if EPF would publish its scoring system, the key performance indices and how the performance are measured and benchmark.

Will Pak Lah comment on his initiative and the results of introducing the KPIs and Performance Meausrement System.

Mediocrity breeds mediocrity and it is something we often boast of.

EPF & BALANCE SCORECARD SYSTEM

EPF-BSC1

DO YOU KNOW WHAT IS BALANCE SCORECARD?
DO YOU KNOW BEFORE INTRODUCING BSC, WHAT IS THE FUNDAMENTAL REQUIREMENTS THAT MUST BE IN PLACE?
WOULD YOU BE ABLE TO FLY AN AIRPLANE WHEN YOUR ONLY EXPERIENCE IS DRIVING PROTON WIRA ON THE ROAD?

WITH BSC, WOULD YOU BE GETTING A MODERN 3-SEATER BICYCLE?

EPF-BSC2

DO YOU LIKE THIS NEW BALANCE SCORE-BIKE???

PENSION FUND MANAGEMENT - EPF MAY DECIDE NOT TO PAY CONTRIBUTORS AT 55

CEO of EPF Proposed to Stop Contributors from lump sum withdrawal of their own pension savings when they reach the age of 55.

The CEO of EPF has now decided that Malaysians have no right to withdraw their own money that they have saved with EPF for their retirement because Malaysians at the age of 55 are incapable to manage their monies and at such are a menace to the government. Therefore, the management of EPF who are financial planning & investment proffessionals decided unilaterally to dictate the ways and means how Malaysians will be allowed to spent their own monies.

What a great irony to suggest that the contributors are idiots and stupid when we have seen the results and outcome of investment made by EPF over the last few years had proven beyond doubt that EPF management are exceptionally incapable & unreliable fund managers - the record speaks for itself.

Past Records & Issues:

13th August 2001, NSTP, the then Deputy Prime Minister Pak-Lah said that "EPF is responsible for overcoming weaknesses in its computer ownership scheme. EPF was duty bound to protect the interests of contributors as this involved their saving. Pak Lah was responding to a report that 150,000 units of computer worth RM525million had yet to be delivered although money had been paid by EPF to the vendor.

10th. March 2002 publication in The Star: it was recorded that 10 EPF employees were reportedly interviewed by police for questioning on the latest scam that came to light the previous week.

On 15th March 2002 news publication (The Star), YB Lee Kah Choon, the MP for Jelutong mentioned that EPF had invested more than one billion ringgit in its subsidiary company, MBSB which had recently announced losses of RM950million.

On 7th October 2002 publication in The Star, an article shows that EPF had substantial equity interest in 20 listed companies that are under intensive care unit (ICU) and which were classified as PN4 companies. The amount of losses on those investments are unpublished & it give rise to the question of who is paying for those losses and who is responsible for the supposely "PRUDENT" investment?

on 12th October 2002, Datuk Azlan Zainol, the CEO of EPF states that "We (EPF managers) want to benchmark ourselves against the best fund managers." I just wonder, is there any statistics to informed members of the KPI and what is the benchmark?

In another article, the Chairman of EPF, Tan Sri Halim Ali made a statement that "As chairman of the investment panel, I must say that I am fully satisfied with their (EPF)performance. They have carried out their work professionally & have never deviated from the task entrusted to them."

There were numerous scandals/scams that occurred in EPF & which were investigated by the authorities, and many of the EPF empoyees were indicted for corrupt practices.

Records of events over the last few years do indicate the lack of wisdom on the part of EPF in their strategic investments and lending practices which have led to low returns and the high level of risks taken without proper analysis and due diligence conducted. At such it had resulted in the poor dividends paid to contributors over the last few years which was disappointing and disgusting. Most contributors had felt that the management of EPF had not taken reasonable steps to protect the members monies. There simply is a lack of professionalism & if we analyze the performance and the returns; presumably, it won't be totally wrong to suggest that those managing the monies are more interested in their personal interest and gains. Yet, continually, EPF claimed to be managing well.

I'm not sure whether the new prime minister will look into EPF in the same manner & passion as he has done with the Immigration dept. But I would bravely suggest that the whole management of EPF be revamp & the CEO be replaced together with the team of theatrical directors (and the Chairman too)and that they should be relocated to Hollywood to perform with George Bush, the world best actor.

(PREVIOUSLY PUBLISHED ON NOVEMBER 2003)

PENSION FUND MANAGEMENT - EPF MAY DECIDE NOT TO PAY CONTRIBUTORS AT 55

CEO of EPF Proposed to Stop Contributors from lump sum withdrawal of their own pension savings when they reach the age of 55.

The CEO of EPF has now decided that Malaysians have no right to withdraw their own money that they have saved with EPF for their retirement because Malaysians at the age of 55 are incapable to manage their monies and at such are a menace to the government. Therefore, the management of EPF who are financial planning & investment proffessionals decided unilaterally to dictate the ways and means how Malaysians will be allowed to spent their own monies.

What a great irony to suggest that the contributors are idiots and stupid when we have seen the results and outcome of investment made by EPF over the last few years had proven beyond doubt that EPF management are exceptionally incapable & unreliable fund managers - the record speaks for itself.

Past Records & Issues:

13th August 2001, NSTP, the then Deputy Prime Minister Pak-Lah said that "EPF is responsible for overcoming weaknesses in its computer ownership scheme. EPF was duty bound to protect the interests of contributors as this involved their saving. Pak Lah was responding to a report that 150,000 units of computer worth RM525million had yet to be delivered although money had been paid by EPF to the vendor.

10th. March 2002 publication in The Star: it was recorded that 10 EPF employees were reportedly interviewed by police for questioning on the latest scam that came to light the previous week.

On 15th March 2002 news publication (The Star), YB Lee Kah Choon, the MP for Jelutong mentioned that EPF had invested more than one billion ringgit in its subsidiary company, MBSB which had recently announced losses of RM950million.

On 7th October 2002 publication in The Star, an article shows that EPF had substantial equity interest in 20 listed companies that are under intensive care unit (ICU) and which were classified as PN4 companies. The amount of losses on those investments are unpublished & it give rise to the question of who is paying for those losses and who is responsible for the supposely "PRUDENT" investment?

on 12th October 2002, Datuk Azlan Zainol, the CEO of EPF states that "We (EPF managers) want to benchmark ourselves against the best fund managers." I just wonder, is there any statistics to informed members of the KPI and what is the benchmark?

In another article, the Chairman of EPF, Tan Sri Halim Ali made a statement that "As chairman of the investment panel, I must say that I am fully satisfied with their (EPF)performance. They have carried out their work professionally & have never deviated from the task entrusted to them."

There were numerous scandals/scams that occurred in EPF & which were investigated by the authorities, and many of the EPF empoyees were indicted for corrupt practices.

Records of events over the last few years do indicate the lack of wisdom on the part of EPF in their strategic investments and lending practices which have led to low returns and the high level of risks taken without proper analysis and due diligence conducted. At such it had resulted in the poor dividends paid to contributors over the last few years which was disappointing and disgusting. Most contributors had felt that the management of EPF had not taken reasonable steps to protect the members monies. There simply is a lack of professionalism & if we analyze the performance and the returns; presumably, it won't be totally wrong to suggest that those managing the monies are more interested in their personal interest and gains. Yet, continually, EPF claimed to be managing well.

I'm not sure whether the new prime minister will look into EPF in the same manner & passion as he has done with the Immigration dept. But I would bravely suggest that the whole management of EPF be revamp & the CEO be replaced together with the team of theatrical directors (and the Chairman too)and that they should be relocated to Hollywood to perform with George Bush, the world best actor.