Friday 29 Mar 2024
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PETALING JAYA (Nov 20): The Employees Provident Fund (EPF) is independent as it does not rely on government funds, Deputy Finance Minister Datuk Chua Tee Yong said.

Chua said the EPF has been providing consistent returns to members since inception. Despite the increase in members, he said the EPF's dividend in recent years had also risen. Last year, the dividend was 6.75%, he said.

"So, it shows that the EPF has been consistently giving returns and safeguarding the investment assets of those retirees.

"The EPF does not rely on any government funding, as such, they can maintain their independence and not rely on the government to provide them assistance," Chua told reporters during a visit the EPF's office along Jalan Gasing here.

Chua was responding to a question on the lack of public confidence towards the EPF. This followed news on the EPF's exposure to 1Malaysia Development Bhd (1MDB) bonds.

Chua said the EPF did not invest directly in 1MDB bonds.

"It is clearly stated in Parliament that the EPF invests in IPP (independent power producer) bonds, they did not actually invest in 1MDB. It's just that 1MDB subsequently acquired the IPP, as such, the debt comes along with it. So before 1MDB acquired the plant, it was just normal investment for bonds.

"EPF has been investing in bonds, equity and property, and if you notice in all the investments that they make, every year they have been consistently providing an average return, which is good," he said.

 

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