24 October 2008

When Valuecap has value, why need EPF's 5 billion ringgit...........

Valuecap, which was set up in 2002 to add liquidity and volume to the market, has met these objectives, according to Second Finance Minister Nor Mohamed Yakcop, whose brainchild it was. And it has been reported that since its inception to September 2007, Valuecap has paid out a total of RM135 million in dividends.

A check with the registrar of companies shows that it is in the black and has assets of RM7.5 billion. So Valuecap has some value. What’s not surprising is that despite the announcement of the RM5 billion infusion, the market continues to be in the doldrums, reflecting the weak sentiment about economic conditions as a whole.

The gomen wants to inject RM5 billion into Valuecap Sdn Bhd to “invest” in the stock market. This money is supposed to be borrowed from the EPF (your retirement money). This is the same EPF that has lent RM3 billion to the Bakun Dam developer.

Valuecap is a fund management firm established in 2002 to invest in the stock market.It is jointly owned by:

a. Khazanah Nasional Bhd, the government’s investment arm,
b. Permodalan Nasional Bhd, and
c. Retirement Fund (Incorporated) or KWAP, a statutory body established on 1 March 2007 under the Retirement Fund Act 2007 (which replaces the repealed Pensions Trust Fund Act 1991). KWAP was set up to assist the Federal Government in funding its liability of pension payouts.

Valuecap has an asset of 7.5 billion and about RM4.9 billion worth of investment in 70 listed companies and the company which has assets of well over RM7.5 billion had paid out a total of RM135 million in dividends since Sept 2007. These companies are from a variety of segments and include the YTL Group, the IJM group, Malayan Banking Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Malaysian Oxygen Bhd, Amway (M) Holdings Bhd and PLUS Expressways Bhd. The list also shows that Valuecap has interest in Real Estate Investment Trusts (REIT) such as Axis REIT and Quill Capital Trust REIT.

Why EPF money??

1.The plan is to inject RM5 billion to Valuecap Sdn Bhd to invest in undervalued companies and the rest of the money on other assets.

2.What worries the shareholders,you and me is the lack of transparency because suddenly Najib has asked the Employee Provident Fund(EPF) to loan the government RM5 billion for this purpose.

3.It seems that everything is done in secrecy with no trace of where the RM5 billion goes to.

4. When our stock market conditions are so volatile do you think its good to use public money like EPF? Why can’t Khazanah, PNB and KWAP tap into other sources of funds?

5.What kind of return can the EPF expect to get from its loan to Valuecap and how does that expected return compare with more stable, less risky investments? The EPF is better off investing the money themselves.

6.Do we still need a gomen that robs peoples saving instead of using their own saving for their business? Imagine the billions they have wasted on mega projects and luxury life of their elite members? Rumours has it that his brother's bank is in the red and need a bailout.......

Why are we still ignorant about the strange things going in our country and still supporting villains who plunder national wealth.? Is EPF money the govt's money or workers' money saved for future retirement..?

Whats more strange is why borrow 5 million from EPF if Valuecap could make great profit by investing undervalued stocks?

Whats more strange is why borrow 5 million from EPF when the gomen says "Ekonomi kita tidak terjejas ,Malaysia tidak berada dalam krisis kewangan "?

source: the edge daily,malaysian insider
graphics: stocktube blogspot

Read here and here.


1 comment:

mangchikla said...

LOm jadik PM dah buat duit awam mcm hak bapak dia ...