Bukit Jalil Sentral, which measures 76.14 acres, is a mixed development project with a gross development value of RM21bil.
KUALA LUMPUR: The Finance Ministry has denied reports that the Employee Provident Fund (EPF) incurred a loss of RM6bil in a month.
Its Minister Lim Guan Eng said when referring to the value of stocks, it would still be incorrect to assume such a loss based on the fluctuation of FTSE Bursa Malaysia KLCI Index (FBM KLCI).
“The FBM KLCI is affected by factors such as economic growth, good financial governance as well as political stability within and outside the country,” Lim said in a written reply to Datuk Seri Dr. Adham Baba.
“For example, the performance of the FBM KLCI Index is the best this year in Asia Pacific including Japan, Korea, China, Asean countries and Australia as of Aug 13, 2018 although not much changed since the end of 2017,” he added.
He said if compared with the book value, EPF still records overall profit. However, the stocks are not sold, then this profit is not recorded and is an unrealised gain.
“The daily change of the FBM KLCI Index does not affect dividend distribution by EPF as it declare dividends based on net profit,” Lim said.
The decline in stock market performance was attributed to the uncertainty of market direction globally increased due to trade wars between US and China, higher interest rates in the US and appreciation of US dollar, the steep fall in Turkey’s lira as well as capital outflow.
“However, with investors’ confidence in the Pakatan Harapan Government, we are confident that EPF’s investment will recover, especially with the Government’s efforts in returning investor confidence through the elimination of corruption and public sector wastage, improve efficiency and effectiveness, and lastly improve the level of competitiveness among private sector,” Lim said.
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