Ringgit undervalued but forex not sole factor influencing EPF decisions


SHAH ALAM: The ringgit is fundamentally undervalued but foreign exchange rates is not the only factor influencing decisions on buying and selling Employees Provident Fund (EPF) assets, says its chief executive officer Ahmad Zulqarnain Onn,.

"Our house view on ringgit is that it is fundamentally undervalued," he said during a press conference after the EPF's 2023 Financial Performance Briefing here on Sunday (March 3).

He said the retirement fund would take a call on whether an asset is undervalued or overvalued.

"In principle, if the asset is undervalued we tend to take profit of the assets," he said.

"Foreign exchange rates are not the only factor that we look at in making the decision whether to buy an asset or sell an asset but it is one of the factors," he said.

He was responding to questions on whether the EPF had repatriated its overseas funds to support the ringgit and whether it will affect dividends next year.

On Feb 28, Bank Negara governor Abdul Rasheed Ghaffour said the ringgit is currently undervalued and it is ought to trade higher on positive economic fundamentals and prospects.

On Friday (March 1), the ringgit fell to 4.744/748 against the US Dollar compared with Thursday's close of 4.740/7455.

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Ringgit , USD , Foreign Exchange , EPF

   

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