Malaysian Insider has a commentary which raises valid questions about Valuecap. It compares and contrasts the RM5 billion injection of EPF funds into Valuecap with the US bailout of financial institutions using taxpayers’ money.
Will Valuecap throw good money after bad?
COMMENTARY
OCT 27 — Last week it seemed like Malaysia was dusting off its playbook for the 1997 Asian financial crisis, starting with a proposed RM5 billion stock market injection. It seems par for the course that the government would borrow the money from the Employees Provident Fund to finance the investment through government agency Valuecap Sdn Bhd.
This time, there would be no tut-ting from Western governments, who are busy shoring up their own tottering financial systems, or global investors, who are reeling from the depth and speed of the current financial crisis. Since the contagion has also affected the Malaysian and other Asian stock markets, the gloating from this side of the world has been discernible but muted. Full article here.
Related posts:
The bailout plan will not helping the market whereas is good enough to help the cronies to release from the mud. Our local market has been wiped off about RM 100 billion or 30% of total capitalization, do u think the RM 5 billion can do any thing? And that is not a first time for EPF to play around the gimmickry, buy in high price and sale in low price. More recent case as what happened in EON bank, so they might (perhaps) buy the share from the cronies in higher price and sale back to them after recover in lower price. To prevent this happen they should make it transparent.
How to judge a undervalued companies? Can i say Petrol and construction companies still consider as undervalued? For instance SCOMI, KENCANA, GAMUDA or Banking? CIMB or MAYBank? Who know? The question is when the drop will be cease? Even Warran Buffet also in deep s*** after he dived into US share market, he can’t mitigated the fall but the market even tumble for another 500 points after the declaration. Moreover , the market analysts also find no b*** to tag so call potential companies during crisis. U can check up yourself from any newspaper or investment company report like OSK etc before the crisis.
As what i say we already lost RM 100 billion, RM 5 is nothing. They shouldn’t put their largess in this but they should consider to enhance the infrastructures or ease household expenditure. Like free toll, reduce electricity and other thing. Don’t forget we over produce electric power over 20% (if no mistaken) and we lost in tremendous subsidy, they should make it more efficient, if this happens in any factory i assure u relevant Engineer will be sack! Dun forget any Ringgits in the market will folded currency, is better than u drop the money to cronies and bring to oversea for further investment.
Complain about this comment
Like or Dislike:
0 
0
Who else, (probably) UMNO cronies and UMNO related companies. This is quite a simliar situation when Malaysia stock market was gravely affected by the Asia financial meltdown. (Many) UMNO companies were seriously hit. They then (allegedly) jacked up the value of (some of) these companies with (questionable) reporting… This time round, they are aware the public will not be taken in for the second time. EPF is a easy meat at their disposal to draw fund from to save their …
Complain about this comment
Like or Dislike:
0 
0
ENOUGH MEH? MAYBE FOR WIPING…
Complain about this comment
Like or Dislike:
0 
0
Wonder why Malaysia no more money and have to used EPF money to invest .. Where is the tax money ? Got money to buy the helicopter no money to invest in Value Cap ..
I am totally against of using our EPF money to invest .. EPF should use the money and invest itself .. If they want to borrow , borrow from CIMB lah ?
If gomen is using the money , and the investment is failure , will Najib resigned as well as the Deputy finance minister ..
Complain about this comment
Like or Dislike:
0 
0
WHAT HAPPENED, WE’RE LUCKY MAH!
Complain about this comment
Like or Dislike:
0 
0
Relatively, it is only a drop in the Bursa KL ocean, but (probably) plenty for bailing out crony companies.
Complain about this comment
Like or Dislike:
0 
0
Why should we throw good money after bad? Afterall, this RM5 billion from our hard-earned savings for our retirement is (probably) going to be used to bail out inefficient and unprofitable government-linked corporations. Malaysians are bing taken as suckers by the government-of-the-day again.
Look at Tenaga Nasional Bhd (TNB). Even with the world oil price dipping to USD60 per barrel, it is in the red. If its the unfair and lop-sided supply agreements between TNB and the Independent Power Providers (IPPs) then for crying out loud, just review the agreements. Why should Malaysians be made to continue suffering high electricity tariffs just to line the pockets of these so-called IPPs.
Complain about this comment
Like or Dislike:
0 
0
IT’S REAL RUBBISH. EPF MAY AS WELL USE THE RM5 BILLION TO BUY BLUE CHIP SHARES THAT HAVE LOST ITS’ VALUE. BY DOING THAT, IN THE LONG TERM THE CONTRIBUTORS WILL BENEFIT IN TERMS OF BETTER DIVIDENDS. AS USUAL, AFTER THE RESULT OF THE 12TH, GE, THE BN GOVERNMENT IS STILL AT IT. THIS IS NOT MALAYSIA BOLEH BUT THE BN GOVERNMENT BOLEH!
Complain about this comment
Like or Dislike:
0 
0
Can I stop the 11% contribution of my salary to EPF? I had enough of all these cronies bail out!
Complain about this comment
Like or Dislike:
0 
0
This (appears to be a) futile move by those brainless yet selfish ruling elites to save their cronies, another form of bail out indirectly.
The growth rate for 2008 will probably reduce to only 1-2%, yet they play around with statistics and insist that it is 4-5%.
Next year, it will be a recession, entering a negative growth territory which may last for 2-3 years before we can recover.
Hey, wake up, men.
Complain about this comment
Like or Dislike:
0 
0
I am suffering from high electricity tariffs thanks to lop-sided agreements with IPPs. From now onwards I am going to stop whinging and change sides. I will be buying into IPP shares and have my pockets lined.
Complain about this comment
Like or Dislike:
0 
0
Who is really behind Valuecap? Will our money go down the drain?
http://www.danielykl.com/blog/2008/10/25/the-valuecap-bailout/
Complain about this comment
Like or Dislike:
0 
0
What happened to the money that PETRONAS gives the Govt? POCKETED ALREADY AH?
Please lah, when want to withdraw EPF money to buy house or medical reasons many questions but NO QUESTIONS ASKED WHEN WANT TO BAIL OUT CRONY COMPANIES.
ENOUGH OF THIS S***.
Complain about this comment
Like or Dislike:
0 
0
Who/where is/are the guarantor(s) and what/where/how is the collateral for the loan? Who is going to pay back the RM5 billion to EPF (if)/when Valuecap collapses in the financial meltdown and is declared bankrupt? Surely not najib!
Complain about this comment
Like or Dislike:
0 
0
Valuecap (appears to be) just a gimmick to prop up dead ventures and companies. When a government starts to use epf for bailout plans you know the economy is in a bad shape.
A simple but effective alternative is guarantee every bank account for 3 years and let all the corrupt ali baba businesses and so called financial instituitions take a free fall. sure lah UMNO members will kena burn but in the long run Malaysians only untung la.
Complain about this comment
Like or Dislike:
0 
0
might as well close down EPF if d management dun know how 2 invest wiht rakyat’s hard earn money. u hear me EPF. work 4 us rakyat not bailout govt. understand EPF. my money must give me good return if not close down EPF. i can manage my own money.what type of management. u better go 2 sleep. 370HSSV.
Complain about this comment
Like or Dislike:
0 
0