I have read the excerpt from PM’s announcement of NEM (read here)
My only interest is in the epf announcement. Let me paste some of the excerpt here.
The Employees Provident Fund presently dominates local equity and bond markets with up to 50 percent of daily Bursa volume represented by EPF related trades, a situation that is not healthy for the market or for the EPF.
EPF will be allowed to invest more assets overseas, both diversifying its portfolio and creating more room domestically for new participants. EPF presently has about 6 percent of assets invested offshore and this will increase significantly.
EPF will also increase its direct investments in the real economy of Malaysia, as an alternative to market investments – taking positions in healthcare, commodities, property and other long-term investments that match EPF’s requirements to protect the real rate of return on its assets.
Look closely at the bolded and red statement – what does that mean to you.. and me? look closely.. think.. think.. and digest it..
ahaaa.. ! I got it.. I read it as – the govt. now is directly get EPF involved in ‘real economy’ .. what do you mean by real economy?
Means.. the investor is no where to be found.. and all the other investment (foreign i mean.. ) has long by passed malaysia.. and go instead to S’pore , Indonesia and other Asean countries. So.., when there’s no more investor.. who do you call to? Ghostbuster? no..
Epf laa.. ! they’re the one with the money..! after Valuecap saga.., and other stimulus plan.. that also directly taking the fund from EPF.., now.. EPF is given green light to invest into all the companies.. (read : which company? )
Take a good look.. what happen when a company entrusted just to safeguard account holder’s money to perform their hajs diversified and open up their investment portfolio beyond traditional mean. The result is ? – Catastrophy..! yes.. there are profit here and there.. but majority.. flop! that companyis – Tabung Haji.. and all their TH this and that..
This is your money.. and my money in EPF.., it is supposedly to be managed by professional. How sure are we that we will get a greater return than current? I have no problem if EPF wanted to become like CALPERS (California Pension fund). That is 1 great example of how to manage pension fund. But looking at past trend.. , I am highly suspicious of the real intention behind the news..
For now.. what i’m doing for my fund.. – I manage majority of my epf money myself. (account 1)
And result shows – Last year my epf money that were invested into unit trust given me a 40% return YoY(year on year) compared to 5.65% that epf offer.
So? you still want to let epf manage your money? I won’t.. and so should you.
Ooops.. this posting should be for the other blog of mine – http://livelifefullest.wordpress.com/
you should visit there.. for more on life’s tips.. and maximising whatever income or your source of income.. and living life while getting the best value from whatever you buy.. sell.., consume.. or whatsoever.. 🙂
see you there.. ( i will promise myself to start writing there frequently too)