Saturday, October 06, 2007

Malaysian EPF cannot make it lah....!

Why isn't the Malaysia govt as smart as the PAP when it comes to managing EPF?
Their GIC equivalent can just issue risk free bonds guaranteed at 3.5% then make the EPF buy these bonds, take this money to invest and keep the returns for themselves for the hard work and risk they are taking.

Without doing this bond issuance, they now have to return all this money to EPF holders - stupid. The EPF guarantees a minimum of 2.5% by law and since its inception has never gone below 4% (the worst year was 2002 when it returned 4.25%...it regularly returns 7-8%). Imagine how much money their GIC equivalent could have made if they are able to keep these returns. Thank goodness we Singaporeans are lucky have smart govt and a great CPF scheme to go along.

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http://www.abcmoney.co.uk/news/232007123054.htm
Malaysia's Employee Provident Fund H1 investment income up 39 pct - report
Published : Thu, 23 Aug 2007 12:51
By : Agencies Print this Story
var addthis_pub = 'abcmoney';

KUALA LUMPUR (Thomson Financial) - Malaysia's state pension fund, the Employees Provident Fund (EPF) reported Thursday that its investment income in the first half grew 38.6 percent to 9.8 billion ringgit from 7.1 billion a year earlier, according to the official Bernama news agency.
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EPF's unaudited first-half results showed income from equities rose 141 percent to four billion ringgit, accounting for 40.8 percent of the fund's generated income, the report said.
EPF chief executive officer Azlan Zainol said returns on its equities portfolio were encouraging but EPF 'will remain cautious as investments in the equities sector pose relatively higher risks over most other instruments.'
Azlan said a total of 58.6 billion ringgit in funds were invested in the equities market in the first half.
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Accumulated investments amounted to 301.4 billion ringgit as of end-June, he said.
He said income derived from money market instruments rose 79.7 percent to 592.4 million ringgit from 329.7 million last year.
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Loans and bonds contributed 2.8 billion ringgit to the funds's total investment income, while income from investments in Malaysia Government Securities and property accounted for 2.4 billion and 23.3 million ringgit respectively, he said.
(1 US dollar = 3.48 ringgit)

2 comments:

Anonymous said...

Unlike PAP, what the Malaysian govt is not as good at with the people's savings is losing by the billions at one go.

Another area other govts can never beat the PAP is in perpetual bragging. Where can you find a govt that keeps praising itself. Only PAP.

And because PAP brags so much one how rich and successful it has become, other countries will lure it into traps meant for the stupid bragger.

Where's all the CPF money as former President Ong asked?

I suppose they are "safely" invested in those huge projects like SooChow Industrial Park and Shin Corp.

But are they our national assets or what?

Who knows?

Temasek had been declared by PAP as a privately run company last year during the Shin Corp.

So don't probe, it is not a national enterprise, just a private enterprise.

Failure or success none of people's business.

So don't play, play, better pray, pray.

Anonymous said...

MOM Hen said in the cited article by Lucky : "But he said he would have done one thing differently - he would put in 'bold print' the link between the extra one percentage point interest and annuities, and how the earnings would be more than enough to pay for the insurance. "

He is talking about 1% of our CPF savings to pay for annuities. Talking about that, it is a fact that the CPF Board had been consistently paying 1% less than fixed deposit rates - not to mention that CPF savings are much longer termed than typical fixed deposits.

Thanks to Lucky's research here, looking at what the Malaysian govt had been paying out to their EPF depositors, I would say we have been cheated of by at least 2%.

So how much have Singaporeans been fleeced over the years? Using a compound interest calculator you can roughly work this out

Example of a 30 years period :

Av. Sum 1% 2%
25,000 8,000 20,000
50,000 17,000 40,000
100,000 34,000 81,000
200,000 69,000 162,000


Look PAP supporters, this issue affects you and your family tremendously; so stop being blind supporters.

Now Hen says he had been thinking of using the imminent extra 1% interest to pay for annuities.

So the annuity insurance scheme is not going to be cheap then even though is not going to benefit the vast majoity of people or their families?

And for the beneficiaries - those who live to 85 and beyond - they will only get a few hundred dollars a month.

However we might all end up paying several hundred dollars a year to PAP-controlled insurance companies - Income and Great Eastern.

You be the judge of whether it is safe to continue with this government. Your CPF is increasingly being locked up by PAP with all kinds of ploys.

I do not think all these is going to end with the current slew of CPF policies if they actually are boiling up from a financial mess inside.

President Ong already warned us obliquely about this. So do not take this issue lightly.

Neither am I saying here that the current slate of opposition people are suitable to replace PAP. They are not. To me, they are utterly useless. They just want to be MPs, they want your support but when they are needed they are nowhere around.

But don't worry if Singaporeans desperately want an alternative, the right people will come out into the open.

They are all around and there is not shortage of talent in Singapore at all. It is only the PAP that has been trying to hookwink the people that only they are the only talented ones.

Talented? My foot.

Pray hard for the right leaders to come out into the open.