EPF positive on Malaysia after smooth govt transition

EPF chief executive officer Datuk Shahril Ridza Ridzuan:

KUALA LUMPUR: The Employees Provident Fund (EPF) remains optimistic of the long-term outlook of the Malaysian economy and anticipates that any potential short-term market dips would provide opportunities for further investments into the domestic markets.

The country’s retirement fund said on Sunday its optimism on the economy followed the formation of the new government under Prime Minister Tun Dr Mahathir Mohamad after Pakatan Harapan’s victory in the General Election 2018.

EPF CEO Datuk Shahril Ridza Ridzuan emphasised that the EPF have been investing in the country for a very long time and believes the strong fundamentals of the Malaysian economy remain intact. 

“Short term volatility is natural given this is the nation’s first experience of a power transition, but the smooth process seen so far will assure investors that Malaysia is a mature democracy and economy,” he said.

Shahril said the new government’s call for greater enhancements to local institutions’ corporate governance practices and independence, together with greater scrutiny by strong regulators, such as 
Bank Negara Malaysia and the Securities Commission Malaysia, would bode well for the local business environment.

He also reaffirmed that the EPF would continue to invest in accordance with its existing principles and stated risk parameters. 

He emphasised the EPF was focused on providing a return to its members of 2%  above the rate of inflation and its investment strategies will continue to focus on assets and companies that will meet this objective.

“We are further heartened that the manifesto of the new Government supports the EPF’s vision of providing a better future for our 13.7 million members. 

“In particular, we welcome the focus on continuously improving the minimum wage framework and encouraging more voluntary savings, especially for housewives,” Shahril said.