EPF continues to be flexible for long-term gains

CEO Amir said EPF’s stance would continue to be guided by market sentiment and its strategies.

PETALING JAYA: The Employees Provident Fund (EPF) will continue to be flexible and guided by its asset allocation strategy to ensure long-term gains on its investments.

Chief executive officer Datuk Seri Amir Hamzah Azizan said although market volatility remained high and geopolitical issues had evolved over the past years, the EPF’s stance would continue to be guided by market sentiment and its strategies.

“The market trend may be downwards but there are still opportunities for us to make money. As long as we pick the right stock and we can trade it accordingly, we can make money.

“The key for the EPF is it must be flexible, it must be nimble so that we can manage,” he told reporters at the International Social Wellbeing Conference 2023 yesterday.

Asked about the EPF’s investment strategy upon the weakening of the ringgit, Amir Hamzah said that the EPF’s asset allocation strategy had been determined and valid for three years.

He said there were some trading ranges that the EPF could move within the market, using the capacity that it has.

“The key is to remember that the EPF is a long-term institutional investment. We must take the opportunity and invest accordingly.”

He said the EPF made short and long-term investments based on its strategy, but as a long-term institutional investment, it doesn’t dramatically shift its investment strategy.

Amir Hamzah said currently, 64% of its total asset allocation was invested locally, which is in the ringgit base, while overseas investments would depend on the assessment of whether it should sell assets, if the investment had realised its value, or invests in other assets according to the return that it is getting.

“It is part and parcel of our normal business condition.

“If we’re selling some assets we think market prices are good at that time and if we like any new investment, we will put money into it,” he said.

Meanwhile, he said the EPF was encouraging its members who are 55 years old to withdraw their savings periodically instead of a lump sum withdrawal to help the people to continue saving and have enough savings when they retire.

“In terms of social protection, this (lump sum withdrawal) may not be a wise way because their savings may not reach the end of their life.

“We want to organise these periodic withdrawals on a monthly basis, enough to live on and the remaining money in the EPF will continue to be compounded, giving them better returns,” he said.

He said the withdrawal amount was up to the members and they could voluntarily request this kind of withdrawal.

“At the moment, we still need further discussion with the government whether this can be done on a mandatory or voluntary basis, or also introduce this to new members,” he added. — Bernama