What's the point of withdrawing funds which are worthless?
A wise man knows how to invest. A fool makes his money go worthless
-
IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here. The OTHER forum is HERE so please stop asking.
Cpf vs epf: 2.5% vs 6.75%
- Thread starter makapaaa
- Start date
A wise man knows how to invest. A fool makes his money go worthless
Why shd I cash out what's mine and leave my country?
Likewise, why shd I migrate when I disagree with the pap?
what you said is wrong.
what Singaporeans want is to get back their money. Is that wrong?
Every working and middle class sinkee should have been able to retire comfortably if the CPF pays the long-term returns, which is 7 pct.
But we have a government that wants to pocket that return and give us a miserly 2.5 percent, justifying that it is guaranteed. Would you trade 4.5 return for a PAP guarantee? I wouldn't when a diversified portfolio of ETFs gives you the best of both world ...safe and deliver the market return.
But we have a government that wants to pocket that return and give us a miserly 2.5 percent, justifying that it is guaranteed. Would you trade 4.5 return for a PAP guarantee? I wouldn't when a diversified portfolio of ETFs gives you the best of both world ...safe and deliver the market return.
good advice. thanks
What's the point of withdrawing funds which are worthless?
At least the Malayisa gov't has kept it's promise of releasing the EPF at 55.
In Spore the PAP has changed the goal posts to 65. In another 10 years how can Sporeans be sure that the PAP will keep it's promise
At least the Malayisa gov't has kept it's promise of releasing the EPF at 55.
In Spore the PAP has changed the goal posts to 65. In another 10 years how can Sporeans be sure that the PAP will keep it's promise
even at 65, the pap does not return to a Singaporean all his cpf money
At least the Malayisa gov't has kept it's promise of releasing the EPF at 55.
In Spore the PAP has changed the goal posts to 65. In another 10 years how can Sporeans be sure that the PAP will keep it's promise
The CPF withdrawal age has never been changed. It remains at 55 so your statement is grossly inaccurate.
I personally withdrew more than half a million bucks upon reaching 55. Had the goal posts been moved, I would have been asked to go away and come back 10 years later.
The PAP has gotten used to having all that easy money $$$ from the CPF fund. It's like a junkie who's hooked on drugs. I also don't believe that they will ever give it up when people reach 65.
That is why I think Sporeans will have to kick out the PAP if they ever want to get their savings back. That is, if there is any money left in the kitty
u like to use your esteemed self or a vvery vvery minute group as an example.
and try to present it as a fact across the board.
are u saying majority normal working slaves earning low unfair wages will think like you do ?
Malaysia ringgit may be weak , but do they have high inflation now ?
are the shops charging 2 or 3 times more now ?
has their housing price soar ?
The PAP has gotten used to having all that easy money $$$ from the CPF fund. It's like a junkie who's hooked on drugs. I also don't believe that they will ever give it up when people reach 65.
That is why I think Sporeans will have to kick out the PAP if they ever want to get their savings back. That is, if there is any money left in the kitty
Agree. PAP is addicted to cheap CPF funds. PAP is addicted to easy worker levies. PAP is addicted to taxes from gambling. PAP is addicted to cheap foreign labour.
It's very easy for a govt who ignores citizens' plight and just continue to be addicted to cheap funds, easy money, to do nothing but just continue to ignore that Singapore doesn't have any problem
This is the situation in Malaysia :
BY SHERIDAN MAHAVERA
Published: 13 March 2015 8:23 AM
Nearly 80% of workers who will turn 55 this year will not have enough savings in their Employees Provident Fund (EPF) to live above the poverty line, according to figures released by the fund’s chief executive officer.
Datuk Shahril Ridza Ridzuan said for the next 20 years, the workers would not have enough in total EPF savings to enable them to live on RM800 a month, which is close to Malaysia’s average poverty line income of RM830.
This is because most of them had low wages when they started contributing to the fund in 1980s, and continued earning relatively low salaries till they turned 55, said Shahril, who did not provide a number for this batch of retirees.
The revelation shines the spotlight on the problem of low incomes among a majority of Malaysian workers, even as Putrajaya said it aims to make Malaysia a high income nation in five years’ time.
According to Shahril, more than 75% of its 14 million EPF contributors earn less than RM2,000 a month. About 15% earn between RM2,000 and RM5,000 a month, while those earning more than RM5,000 are in the top 10%.
The EPF has set RM196,800 as a savings threshold that would allow a contributor to spend at least RM800 a month for the next 20 years.
The threshold is revised every three years to take into account inflation.
Only about 20% of its contributors who turn 55 this year are expected to have RM196,800 in total savings. That percentage is likely to stay about the same in the coming years, said Shahril.
“Historically, we have a low wage environment, so that percentage has inched up only a little.
“This is why we tell contributors not to take out their savings till they are 60, when they really retire.
“That extra five years can earn them an extra 40% through compound interest,” Shahril (pic, right) said when met after a talk organised by the Chevening Alumni Association in Kuala Lumpur last night.
These figures, he said, reflect the new reality of working life in Malaysia, as people will have to work beyond 55 in order to save enough to live out the rest of their lives.
“This is the trend in developed countries and we are getting there. The reality is that you cannot retire and enjoy yourself at 55 any longer.”
That age was set in the 1950s and has not been changed to take into account longer life expectancies, he said, adding that these days, people expect to live through their 70s.
This trend is compounded by the fact that Malaysia is a rapidly ageing nation. In 2030, 17% of the population will be aged above 65, he said. In 2040, people aged 65 will outnumber younger individuals.
“So we need policies to deal with this, such as financial literacy training so that young people are aware of the need to save for retirement and how to integrate old workers into the market.
“These are issues that advanced economies have to deal with and we are getting there,” said Shahril. - March 13, 2015.
what special or bad about a packed train / bus ?
happens in India ,
happens in Japan ,
happens here.
in fact it happens in most counties during peak hour.
happens in India ,
happens in Japan ,
happens here.
in fact it happens in most counties during peak hour.
http://www.themalaysianinsider.com/malaysia/article/epf-considering-withdrawal-of-savings-at-60
EPF considering withdrawal of savings at 60
Published: 10 April 2015 5:57 PM
The Employees Provident Fund (EPF) is considering changing the permissible age for members to withdraw their savings from the current 55 years to 60 years to coincide with the societal age for retirement. – The Malaysian Insider pic by Najjua Zulkefli, April 10, 2015.
The Employees Provident Fund (EPF) is considering changing the permissible age for members to withdraw their savings from the current 55 years to 60 years, the societal age for retirement. EPF CEO Datuk Shahril Ridza Ridzuan says the deliberation is based on the fact that, on average, people exhaust their retirement savings within 3-5 years after a full withdrawal from EPF.
"Roughly about 70% of people who withdraw their retirement savings in full, will essentially deplete the money within three to five years time.
"Malaysians now make the withdrawal first (at 55) before actually retiring (at 60), and we are looking at this issue for the right policy response," Shahril told a media briefing today in conjunction with the release of the pension fund's 2014 Annual Report.
This disjunction between the age at which contributors can withdraw their savings and when they retire, means contributors are expending and eating into their savings five years before they retire.
He said while the EPF recommended an amount of at least RM196,800 upon retirement, only 22% of contributors met this minimum last year.
Even the sum of RM196,800 will amount to a monthly income of RM820 for 20 years until age 75, just about at the poverty threshold of RM830 per month in 2012 declared by the Statistics Department.
Even this barely adequate amount will be a challenge for many EPF contributors to meet. Shahril points out the alarming figure that 68% of EPF members, aged 55 and five years away from retirement, had less than RM50,000 in their accounts, (SGD 17,827) barely a quarter of the recommended minimum total.
One of the responses of the EPF to this parlous situation is to start a pilot project in Kuala Lumpur and Petaling Jaya to offer advice on financial and retirement planning to its contributors. – April 10, 2015.
EPF considering withdrawal of savings at 60
Published: 10 April 2015 5:57 PM
The Employees Provident Fund (EPF) is considering changing the permissible age for members to withdraw their savings from the current 55 years to 60 years to coincide with the societal age for retirement. – The Malaysian Insider pic by Najjua Zulkefli, April 10, 2015.
The Employees Provident Fund (EPF) is considering changing the permissible age for members to withdraw their savings from the current 55 years to 60 years, the societal age for retirement. EPF CEO Datuk Shahril Ridza Ridzuan says the deliberation is based on the fact that, on average, people exhaust their retirement savings within 3-5 years after a full withdrawal from EPF.
"Roughly about 70% of people who withdraw their retirement savings in full, will essentially deplete the money within three to five years time.
"Malaysians now make the withdrawal first (at 55) before actually retiring (at 60), and we are looking at this issue for the right policy response," Shahril told a media briefing today in conjunction with the release of the pension fund's 2014 Annual Report.
This disjunction between the age at which contributors can withdraw their savings and when they retire, means contributors are expending and eating into their savings five years before they retire.
He said while the EPF recommended an amount of at least RM196,800 upon retirement, only 22% of contributors met this minimum last year.
Even the sum of RM196,800 will amount to a monthly income of RM820 for 20 years until age 75, just about at the poverty threshold of RM830 per month in 2012 declared by the Statistics Department.
Even this barely adequate amount will be a challenge for many EPF contributors to meet. Shahril points out the alarming figure that 68% of EPF members, aged 55 and five years away from retirement, had less than RM50,000 in their accounts, (SGD 17,827) barely a quarter of the recommended minimum total.
One of the responses of the EPF to this parlous situation is to start a pilot project in Kuala Lumpur and Petaling Jaya to offer advice on financial and retirement planning to its contributors. – April 10, 2015.
Hornbill Unleashed
https://hornbillunleashed.wordpress.com/2012/03/25/28762/
March 25, 2012
Umno has turned the EPF into its private cookie jar
Filed under: Corruption — Hornbill Unleashed @ 12:00 AM
The Employees Provident Fund (EPF) is one of the largest savings funds in the world which has
accumulated more than RM 440.52 billion in 2011. And this represents the life savings of about 12
million Malaysians. Of course money kept under the pillow would not generate more income. It has to be
invested prudently. The issue now is has the EPF under UMNO-led government invested the hard-earned
savings of Malaysians judiciously. Until 2011 the government has already used 60 per cent of the
people’s savings on various loans and investments.
The 12 million EPF contributors are not somewhat contented with the government. Many EPF
contributors surveyed across the nation have the perception that they have been taken for a ride by the
government. Their life-long savings is not giving them good returns. “The government is taking big loans
from the EPF. Could this be the reason why the EPF is now getting employers to increase their mandatory
contributions from 12% to 13%?” asked a 50-year-old single mother attached to a government-linked
company (GLC).
Government still owed the EPF RM240 billion
On 23 June 2011, the EPF said that 60 per cent of its funds have been lent to or borrowed by the
Malaysian government. As at Dec 2010 the government still owed the EPF about RM240 billion. In other
words, the UMNO-led government has already spent or used 60 per cent of all the savings. The fact is it
does not really have a good track record of how to manage the economy sensibly. 2012 will spot the 15th
year of budget deficit by the Federal government with no sign of financial intelligences.
If money lent to the government is used for profitable business they are wondering why the dividend to
the EPF contributors is so low – hovering around 4 to 5% before 2011. “They are paying us a paltry
dividend. We are bearing the burden of diminishing returns,” said a senior clerk attached to a chemical
industry in Kemaman. “The paltry dividend only indicates that the EPF money is not invested in
rewarding business but those with links to UMNO,” she added.
“Even the latest 6% dividend came as no surprise to the contributors. This is a one-off affair that only
happens when UMNO is facing a general election. All figures will normally go up during this time –
dividends for PNB unit trusts (more than 7 per cent including bonus), Tabung Haji (6 per cent) and so
on,” she reproved.
High-risk – no-return investments
The EPF contributors are now worried that their money has gone into high-risk – no-return investments.
The Auditor-General’s Report 2010 indicated that the EPF had approved loans worth an astounding
RM55.1 billion not backed by government guarantees. The 13 debtors however were not named. The
Auditor-General’s Report 2010 also found only one of the 13 debtors was qualified to obtain a loan
without such a guarantee. That particular debtor was extended credit worth RM21.3 billion.
This form of lending must have obviously side-stepped good practices and apposite financial procedures.
It also reflects on the lack of transparency and accountability on the government part.
“They are gambling with the people’s life savings for their retirement and old age. Things are never
transparent and we don’t actually know what’s happening to our savings. A lot of things are hidden from
us. What are the trade unions doing? The board of directors and the ministry of Finance?” chided a 43
year-old senior manager with a manufacturing company.
Instead of issuing bonds that has a better liquidity the borrowers find a short-cut to put their hands into
the EPF’s till. These are usually borrowers who cannot secure loans from the banks or from any
international sources. Taking a huge loan from the EPF – usually with a very low interest rate – is one
sure way of getting their business going regardless of its competitiveness. On this basis too the
government is indebted to help if these companies fail in their business;
There will be massive financial implications to the country’s economy and the EPF when these
companies were to default on their payments or go bankrupt. However, the EPF can give cheaper loans
than commercial banks to GLCs and crony companies to save them from bankruptcy and in some cases
make big profits from the people’s hard-earned contributions.
“This is not money that belongs to the state. It’s the people’s pension fund. But it is being used and
abused for chiefly political purposes,” said a lecturer in a local private university.
How they can pay dividends
It is interesting to find out how the EPF can pay dividends of 4 to 5% when their returns from their huge
loans are usually not more than 2 to 3%? They are practically not making much money out of these
investments when the interests are charged at these figures. And when it comes to paying dividends this
does not come from business profits but they have to sell some of their interests in the listed companies,
or else nothing much could be paid to the workers.
“Or else how can the government pay a dividend of + or – 5 % when banks’ FD rates are less than 3.5%,
some trust funds are losing money, some GLC’s are also doing badly?” chided another 39-year-old bank
executive
In other words, the EPF is actually not doing any viable business but assisting the government to help
some UMNO-linked companies and the GLCs. When these businesses fail the government has again to
bail them out and money from the EPF, among other sources, is used.
“The Employees Provident Fund (EPF) sold a whopping RM441.09mil worth of Malaysia-listed equities
on March 7 alone, in line with its trend of active disposals over the last two weeks.” reported a local
daily.
“Bursa Malaysia filings showed that on March 7, the EPF along with its portfolio managers dumped a
total 83.68 million shares on the open market, substantially more than the 7.4 million shares it had
acquired the same day. The number of shares disposed of represents almost half the total volume traded
that day, which stood at 173.14 million shares. Fund managers reckon that the fund was merely taking
profit.”
To the economists, the EPF needs the money to pay the “feel-good” pre-election dividend of 6% to the
contributors.
Controversial NFCorp
Unlike dealing with commercial banks dealing with the government or the EPF which is under
government control the interests incurred would normally be around 2% or less for any loans given out.
Take for instance the controversial NFCorp . It was given a soft loan of RM250 million from the
government with only 2% interest rate and a five-year grace period before repayment. Even earning from
this amount is quite controversial as in many cases they end up as non-performing loans and when
payment is defaulted the lender will be in trouble. But in most cases the government will step in to bail
the failed companies by using taxpayers’ money, the EPF or Petronas dollars.
“Being an EPF contributor, I am not surprised. The EPF has been giving an average 4 to 5 % return over
the past 10 years. Now we know with facts why they are giving only such low rate of return. Take in the
unofficial inflation rate of 4%, this makes our real return at only 1 % or nil,” quipped a 54 year-oldworker
in a private firm.
Rightfully, workers should not be happy with 5% per cent dividends in this context. All savings will have
to take into consideration of depreciated value of their savings due to inflation.
“Just imagine if the EPF welcomes the extension of retirement age to 60 then that contributors cannot
withdraw their savings for another five years. This will only benefit the government more,” said a 43
year-old lady executive with a local bank.
RM6.5 billion loan to Felda
RM6.5 billion loan was taken by Federal Land Development Authority (Felda) from the Employees
Provident Fund (EPF). It seems the EPF statement had stated that the company regarded the loan as an
investment that could contribute to a “better dividend achievement” for its contributors. But if Felda, as
claimed by the government is in sound financial shape why the RM6.5 billion loan from the EPF? Why
not from the banks or other international lenders? Of course these lenders would look into Felda’s risk
rating and the interest rate will be higher. It cannot be a meagre 2% interest. Thus using the EPF money
will be the most convenient for the government to avoid all these hassles.
Beyond that, if Felda has a healthy bank balance or cash reserves and claims to have assets worth more
than RM19 billion why must it bother to take a huge loan from the EPF? And is the government
transparent on all transactions involving the EPF – the amount of loans taken, who are those given the
loans, their credentials and the profit and the loss incurred thus far? A senior manager of a company has
this to say, “the EPF has not been transparent in its dealings, especially pertaining to its investments and
“unrealised losses”.
Government debt stands at 53%
Government’s borrowing is not risk free. If the government borrows disproportionately in relation to its
GDP and without exercising judiciousness on the projects it is financing, the long-term implication can be
disastrous. The country’s federal debt level reached RM456 billion at the end of 2011, which is a
discernible 88.4 per cent increase from the RM242 billion in 2006. This debt level will further increase
with more borrowings to develop more projects.
The Constitution of Malaysia caps government debt at 55 per cent of GDP. As of 30 June 2011,
government debt stands at 53 per cent but this figure only includes government borrowing, not public
borrowing. When both government and public borrowings are encompassed the figure may surpass far
more than the 55 per cent cap. Seemingly when it touches 55 per cent, the BN government will officially
be in crisis and the Constitution may need to be changed to increase borrowing or possibly it will require
a bailout. But with all the uncertainties in the world economies, with less prudent financial management
the Malaysian economy can crumble at any time due to this “financial crunch”.
Unlike developed countries with strong fundamentals like the US, where debts and spending go more
than savings a small country like Malaysia cannot sustain the pressure of a ‘financial crunch”. Foreigners
will lose confidence in the Malaysian economy like what has happened to Greece. Printing more money
will not resolve the problem as high inflation will set in and money will lose its value. This will affect
local and international businesses.
It’s when rating agencies such as S&P’s or Moody downgrade Malaysia’s sovereign rating by 2 or 3
points will indicate the country has exceeded the limit. And this will cause an abrupt plunge of the ringgit.
That’s what has happened to Greece where the government had to write off 50 per cent of their
outstanding government loans. And if this happens to Malaysia, the EPF will be asked to take a 50 per
cent cut of outstanding debt owed by the government. More than half of savers’ EPF money will be lost
and the UMNO-led government would then plead to the people to remain patient and be patriotic. And
after more than 30 to 40 years of working hard worker’s EPF savings would shrink. Dividends paid will
totally diminish and even the money saved will become half the value. Printing more money is not going
to help.
Refused to grant the funding
Venturing into any non-profitable housing scheme will undermine the interests of the EPF because the
buyers will not be able to or will not repay the loan. The government has the SPNB (Syarikat Perumahan
Negara Bhd) that was initiated in1997 to provide for affordable homes to the poor. Now comes PR1MA
(Perumahan Rakyat 1Malaysia), which is supposed to be for 20 000 house buyers in one precinct under
an UMNO leader using the EPF money.
The use of RM1.5bil from the EPF in a scheme offering home loans to those who cannot qualify for bank
financing will be disadvantageous to the EPF contributors. The government is not safeguarding the EPF’s
interests again, as this deal cannot ensure secure financial returns for the EPF. But this is not UMNO’s
concern. UMNO is more interested in politics and its own survival in the next GE.
There is a big risk in this scheme, as the three banks approached by the government had refused to grant
the funding to these 20,000 house buyers. Why must the government involve the EPF then? If the
government wants to hold the responsibility of any default, then rightfully the government should be
involved directly to finance this scheme. This is the right way to safeguard the interests of the EPF.
The EPF is not UMNO’s cookie jar. The money belongs to the workers and should not be used to achieve
a political goal. If this is a charity program as claimed by UMNO then it is the onus of the government to
support such a project on its own.
Not be used as a cash cow
Billions of ringgit from The Employees’ Provident Fund (EPF) today has been used to rescue failing
companies listed on the Malaysian stock Exchange. Although the EPF is one of the biggest pension funds
in the world, the workers feel that it should not be used as a cash cow to bail out financially troubled
Government agencies or companies. “The workers must not be left in the dark. Every decision made by
the EPF must be above board. If they can prove that after investing the money in a proper way, they still
cannot get good returns, that is fine, we can accept it,” commented a senior bank manager.
But taking the EPF funds for political reasons, to bail out failing companies or to lend the money out to
UMNO crony companies is undeserved. This becomes a political agenda and not business. UMNO-BN
cronies and their patron political select are actually feathering their own nests to the impairment of
national interests and the rightful owners of that pension fund.
https://hornbillunleashed.wordpress.com/2012/03/25/28762/
March 25, 2012
Umno has turned the EPF into its private cookie jar
Filed under: Corruption — Hornbill Unleashed @ 12:00 AM
The Employees Provident Fund (EPF) is one of the largest savings funds in the world which has
accumulated more than RM 440.52 billion in 2011. And this represents the life savings of about 12
million Malaysians. Of course money kept under the pillow would not generate more income. It has to be
invested prudently. The issue now is has the EPF under UMNO-led government invested the hard-earned
savings of Malaysians judiciously. Until 2011 the government has already used 60 per cent of the
people’s savings on various loans and investments.
The 12 million EPF contributors are not somewhat contented with the government. Many EPF
contributors surveyed across the nation have the perception that they have been taken for a ride by the
government. Their life-long savings is not giving them good returns. “The government is taking big loans
from the EPF. Could this be the reason why the EPF is now getting employers to increase their mandatory
contributions from 12% to 13%?” asked a 50-year-old single mother attached to a government-linked
company (GLC).
Government still owed the EPF RM240 billion
On 23 June 2011, the EPF said that 60 per cent of its funds have been lent to or borrowed by the
Malaysian government. As at Dec 2010 the government still owed the EPF about RM240 billion. In other
words, the UMNO-led government has already spent or used 60 per cent of all the savings. The fact is it
does not really have a good track record of how to manage the economy sensibly. 2012 will spot the 15th
year of budget deficit by the Federal government with no sign of financial intelligences.
If money lent to the government is used for profitable business they are wondering why the dividend to
the EPF contributors is so low – hovering around 4 to 5% before 2011. “They are paying us a paltry
dividend. We are bearing the burden of diminishing returns,” said a senior clerk attached to a chemical
industry in Kemaman. “The paltry dividend only indicates that the EPF money is not invested in
rewarding business but those with links to UMNO,” she added.
“Even the latest 6% dividend came as no surprise to the contributors. This is a one-off affair that only
happens when UMNO is facing a general election. All figures will normally go up during this time –
dividends for PNB unit trusts (more than 7 per cent including bonus), Tabung Haji (6 per cent) and so
on,” she reproved.
High-risk – no-return investments
The EPF contributors are now worried that their money has gone into high-risk – no-return investments.
The Auditor-General’s Report 2010 indicated that the EPF had approved loans worth an astounding
RM55.1 billion not backed by government guarantees. The 13 debtors however were not named. The
Auditor-General’s Report 2010 also found only one of the 13 debtors was qualified to obtain a loan
without such a guarantee. That particular debtor was extended credit worth RM21.3 billion.
This form of lending must have obviously side-stepped good practices and apposite financial procedures.
It also reflects on the lack of transparency and accountability on the government part.
“They are gambling with the people’s life savings for their retirement and old age. Things are never
transparent and we don’t actually know what’s happening to our savings. A lot of things are hidden from
us. What are the trade unions doing? The board of directors and the ministry of Finance?” chided a 43
year-old senior manager with a manufacturing company.
Instead of issuing bonds that has a better liquidity the borrowers find a short-cut to put their hands into
the EPF’s till. These are usually borrowers who cannot secure loans from the banks or from any
international sources. Taking a huge loan from the EPF – usually with a very low interest rate – is one
sure way of getting their business going regardless of its competitiveness. On this basis too the
government is indebted to help if these companies fail in their business;
There will be massive financial implications to the country’s economy and the EPF when these
companies were to default on their payments or go bankrupt. However, the EPF can give cheaper loans
than commercial banks to GLCs and crony companies to save them from bankruptcy and in some cases
make big profits from the people’s hard-earned contributions.
“This is not money that belongs to the state. It’s the people’s pension fund. But it is being used and
abused for chiefly political purposes,” said a lecturer in a local private university.
How they can pay dividends
It is interesting to find out how the EPF can pay dividends of 4 to 5% when their returns from their huge
loans are usually not more than 2 to 3%? They are practically not making much money out of these
investments when the interests are charged at these figures. And when it comes to paying dividends this
does not come from business profits but they have to sell some of their interests in the listed companies,
or else nothing much could be paid to the workers.
“Or else how can the government pay a dividend of + or – 5 % when banks’ FD rates are less than 3.5%,
some trust funds are losing money, some GLC’s are also doing badly?” chided another 39-year-old bank
executive
In other words, the EPF is actually not doing any viable business but assisting the government to help
some UMNO-linked companies and the GLCs. When these businesses fail the government has again to
bail them out and money from the EPF, among other sources, is used.
“The Employees Provident Fund (EPF) sold a whopping RM441.09mil worth of Malaysia-listed equities
on March 7 alone, in line with its trend of active disposals over the last two weeks.” reported a local
daily.
“Bursa Malaysia filings showed that on March 7, the EPF along with its portfolio managers dumped a
total 83.68 million shares on the open market, substantially more than the 7.4 million shares it had
acquired the same day. The number of shares disposed of represents almost half the total volume traded
that day, which stood at 173.14 million shares. Fund managers reckon that the fund was merely taking
profit.”
To the economists, the EPF needs the money to pay the “feel-good” pre-election dividend of 6% to the
contributors.
Controversial NFCorp
Unlike dealing with commercial banks dealing with the government or the EPF which is under
government control the interests incurred would normally be around 2% or less for any loans given out.
Take for instance the controversial NFCorp . It was given a soft loan of RM250 million from the
government with only 2% interest rate and a five-year grace period before repayment. Even earning from
this amount is quite controversial as in many cases they end up as non-performing loans and when
payment is defaulted the lender will be in trouble. But in most cases the government will step in to bail
the failed companies by using taxpayers’ money, the EPF or Petronas dollars.
“Being an EPF contributor, I am not surprised. The EPF has been giving an average 4 to 5 % return over
the past 10 years. Now we know with facts why they are giving only such low rate of return. Take in the
unofficial inflation rate of 4%, this makes our real return at only 1 % or nil,” quipped a 54 year-oldworker
in a private firm.
Rightfully, workers should not be happy with 5% per cent dividends in this context. All savings will have
to take into consideration of depreciated value of their savings due to inflation.
“Just imagine if the EPF welcomes the extension of retirement age to 60 then that contributors cannot
withdraw their savings for another five years. This will only benefit the government more,” said a 43
year-old lady executive with a local bank.
RM6.5 billion loan to Felda
RM6.5 billion loan was taken by Federal Land Development Authority (Felda) from the Employees
Provident Fund (EPF). It seems the EPF statement had stated that the company regarded the loan as an
investment that could contribute to a “better dividend achievement” for its contributors. But if Felda, as
claimed by the government is in sound financial shape why the RM6.5 billion loan from the EPF? Why
not from the banks or other international lenders? Of course these lenders would look into Felda’s risk
rating and the interest rate will be higher. It cannot be a meagre 2% interest. Thus using the EPF money
will be the most convenient for the government to avoid all these hassles.
Beyond that, if Felda has a healthy bank balance or cash reserves and claims to have assets worth more
than RM19 billion why must it bother to take a huge loan from the EPF? And is the government
transparent on all transactions involving the EPF – the amount of loans taken, who are those given the
loans, their credentials and the profit and the loss incurred thus far? A senior manager of a company has
this to say, “the EPF has not been transparent in its dealings, especially pertaining to its investments and
“unrealised losses”.
Government debt stands at 53%
Government’s borrowing is not risk free. If the government borrows disproportionately in relation to its
GDP and without exercising judiciousness on the projects it is financing, the long-term implication can be
disastrous. The country’s federal debt level reached RM456 billion at the end of 2011, which is a
discernible 88.4 per cent increase from the RM242 billion in 2006. This debt level will further increase
with more borrowings to develop more projects.
The Constitution of Malaysia caps government debt at 55 per cent of GDP. As of 30 June 2011,
government debt stands at 53 per cent but this figure only includes government borrowing, not public
borrowing. When both government and public borrowings are encompassed the figure may surpass far
more than the 55 per cent cap. Seemingly when it touches 55 per cent, the BN government will officially
be in crisis and the Constitution may need to be changed to increase borrowing or possibly it will require
a bailout. But with all the uncertainties in the world economies, with less prudent financial management
the Malaysian economy can crumble at any time due to this “financial crunch”.
Unlike developed countries with strong fundamentals like the US, where debts and spending go more
than savings a small country like Malaysia cannot sustain the pressure of a ‘financial crunch”. Foreigners
will lose confidence in the Malaysian economy like what has happened to Greece. Printing more money
will not resolve the problem as high inflation will set in and money will lose its value. This will affect
local and international businesses.
It’s when rating agencies such as S&P’s or Moody downgrade Malaysia’s sovereign rating by 2 or 3
points will indicate the country has exceeded the limit. And this will cause an abrupt plunge of the ringgit.
That’s what has happened to Greece where the government had to write off 50 per cent of their
outstanding government loans. And if this happens to Malaysia, the EPF will be asked to take a 50 per
cent cut of outstanding debt owed by the government. More than half of savers’ EPF money will be lost
and the UMNO-led government would then plead to the people to remain patient and be patriotic. And
after more than 30 to 40 years of working hard worker’s EPF savings would shrink. Dividends paid will
totally diminish and even the money saved will become half the value. Printing more money is not going
to help.
Refused to grant the funding
Venturing into any non-profitable housing scheme will undermine the interests of the EPF because the
buyers will not be able to or will not repay the loan. The government has the SPNB (Syarikat Perumahan
Negara Bhd) that was initiated in1997 to provide for affordable homes to the poor. Now comes PR1MA
(Perumahan Rakyat 1Malaysia), which is supposed to be for 20 000 house buyers in one precinct under
an UMNO leader using the EPF money.
The use of RM1.5bil from the EPF in a scheme offering home loans to those who cannot qualify for bank
financing will be disadvantageous to the EPF contributors. The government is not safeguarding the EPF’s
interests again, as this deal cannot ensure secure financial returns for the EPF. But this is not UMNO’s
concern. UMNO is more interested in politics and its own survival in the next GE.
There is a big risk in this scheme, as the three banks approached by the government had refused to grant
the funding to these 20,000 house buyers. Why must the government involve the EPF then? If the
government wants to hold the responsibility of any default, then rightfully the government should be
involved directly to finance this scheme. This is the right way to safeguard the interests of the EPF.
The EPF is not UMNO’s cookie jar. The money belongs to the workers and should not be used to achieve
a political goal. If this is a charity program as claimed by UMNO then it is the onus of the government to
support such a project on its own.
Not be used as a cash cow
Billions of ringgit from The Employees’ Provident Fund (EPF) today has been used to rescue failing
companies listed on the Malaysian stock Exchange. Although the EPF is one of the biggest pension funds
in the world, the workers feel that it should not be used as a cash cow to bail out financially troubled
Government agencies or companies. “The workers must not be left in the dark. Every decision made by
the EPF must be above board. If they can prove that after investing the money in a proper way, they still
cannot get good returns, that is fine, we can accept it,” commented a senior bank manager.
But taking the EPF funds for political reasons, to bail out failing companies or to lend the money out to
UMNO crony companies is undeserved. This becomes a political agenda and not business. UMNO-BN
cronies and their patron political select are actually feathering their own nests to the impairment of
national interests and the rightful owners of that pension fund.
Prof Leong Siew Ming had his cpf return before age 55 yrs!!!!! So the details are important dear Whatson
You trying explaining this logic to these Sinkie Fucktards here, you are wasting your time.
They live in a 'closed up' box where they only can see what is outside their HDB pigeon hole and no more.
Anyway, they are definitely not enjoying the PURCHASING POWER of the Sing $ that ppl like me are enjoying, right now.
The beauty of a strong $, you can buy super quality stuff all over the World becos other cuntry $ is weaker to yours.
Sinkie fucktards only can look over the causeway to JB! LoLoLoLoL
only fucktards need to depend on strong S$ to be able to buy those non essential expensive stuff.
the rich are not restricted by this condition.
these fucktards don't know what's the purpose of a forum like this.
these fucktards is neither poor nor very rich , hence when the S$ goes up
like a cheapskate they takes the opportunity to go on a shopping spree.
they buy super quality stuff all over the World because at other times these items are beyond their reach.
the rich are not restricted by this condition.
these fucktards don't know what's the purpose of a forum like this.
these fucktards is neither poor nor very rich , hence when the S$ goes up
like a cheapskate they takes the opportunity to go on a shopping spree.
they buy super quality stuff all over the World because at other times these items are beyond their reach.
Similar threads
