This article first appeared in The Edge Financial Daily on May 14, 2018

KUALA LUMPUR: The Employees Provident Fund (EPF) remains optimistic about the long-term outlook for the Malaysian economy under the new government that was formed following the 14th general election (GE14) held on May 9. The retirement savings fund said it foresees opportunities for investments into the domestic markets on any potential short-term-market dips.

“We have been investing here for a very long time and believe the strong fundamentals of the Malaysian economy remain intact. Short-term volatility is natural given this is the nation’s first experience of a power transition, but the smooth process seen so far will assure investors that Malaysia is a mature democracy and economy,” EPF chief executive officer Datuk Shahril Ridza Ridzuan (pic) said in a statement yesterday.

The new government’s call for greater enhancements to local institutions’ corporate governance practices and independence, together with greater scrutiny by strong regulators, such as Bank Negara Malaysia and the Securities Commission Malaysia, would bode well for the local business environment, the statement read.

Shahril also reiterated that the EPF would continue to invest in accordance with its existing principles and stated risk parameters.

The EPF is focused on providing a return to its members of 2% above the rate of inflation and its investment strategies will continue to focus on assets and companies that will meet this objective.

“We are further heartened that the manifesto of the new government supports the EPF’s vision of providing a better future for our 13.7 million members. In particular, we welcome the focus on continuously improving the minimum wage framework and encouraging more voluntary savings, especially for housewives,” he added.

Financial markets will open for their first day of trading today after closing last Wednesday for GE14, followed by two days of public holidays as promised by the leader of the Pakatan Harapan coalition, Prime Minister Tun Dr Mahathir Mohamad.