EPF: Positive outlook after smooth transition

Galeria Katowicka is located in Katowice, about 260km from the Polish capital of Warsaw, and 70km from Krakow, the second-largest city. Katowice metropolitan area has a population of between three and 3.5 million. The EPF in an email said:

KUALA LUMPUR: The Employees Provident Fund (EPF) remains optimistic about the long-term outlook of the economy following the formation of the new government.

In a statement, EPF said it anticipated that any potential short-term market dips would provide opportunities for further investments in the domestic markets.

According to chief executive officer Datuk Shahril Ridza Ridzuan, EPF has been investing in the country for a very long time and the strong fundamentals of the economy have remained intact.

“Short-term volatility is natural given that 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 pointed out.

He pointed out that the new government’s call for greater enhancements to local institution corporate governance practices and independence, together with greater scrutiny by Bank Negara and the Securities Commission, would bode well for the local business environment.

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

The EPF is focused on providing a return to its members of 2% above the inflation rate and its investment strategies would continue to focus on assets and companies that would 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 added.