Armed Forces fund pays 16%; EPF only 5.8%

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This is an excerpt of a report from The Star:

…Najib also announced that contributors to the Armed Forces Superannuation Fund (LTAT) would receive a 16% dividend and bonus payout, the highest since 1997.

He said the LTAT would pay out 7% in dividends, 3% bonus and another 6% in special bonuses to its 120,000 contributors for 2007.

“LTAT recorded a gross unaudited profit of RM606mil, a 29.2% increase compared to the RM468.9mil achieved in 2006,” he said, adding that the amount was the second highest since LTAT was established.

The highest gross profit recorded was in 1996, when the fund made RM697.6mil.

And here is a reaction from a friend of mine:

So Najib announces a 16% dividend for LTAT. And EPF was only able to deliver 5.8% (for 2007)? ASB announced 8.5% a short while back.

What does this tell us? That this is a government for all the people and, especially, the lower income? Or that this is a government of sectional interests? Or that this is simply an incompetent government, milking the EPF as a cheap source of funds for its multi-billion dollar schemes which do not appear to have been especially well thought through.

Take SCORE (the Sarawak Corridor of Renewable Energy), for example. The first of the energy backbone for SCORE, namely Bakun, has seen a disaster of a resettlement, while the second proposed energy backbone, namely Murum, may well be the nail in the coffin of the Penan, who have been swept aside by plantation development.

EPF is managed by the government, while ASB is managed by PNB and LTAT is a government statutory body.

The largest fund in the country (EPF) turns in a totally lack-lustre performance against much smaller funds. The fund that’s the retirement income of, especially, lowly paid workers, gives them a miserable return compared to the likes of ASB or LTAT.

Maybe EPF contributors should turn the fund over to the PNB, provided PNB can assure them that it will deliver dividends on par with ASB.

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charles chia

What a ahame, absolute shame but the greater shame is that Govt. cannot feel it. Adding injury to insult, PM saya Malaysia owned by all. They are actually amoral having NO SENSE AT ALL OF MORALITY. They are out to makan orang of the other races. A sure FAILED STATE in the making. All the other component parties of BN knows all about this but choose to turn a blind eye, typical (lackeys) of UMNO.

With Luck

As long as the fund is managed by the government, you do n ot have to expect a good result. Read the news on the Star. Items costs a few ringgit, the government paid more than a few hundred ringgit for it. Why? Where is the clean and efficent seen in this country. It is only supporting and helping their own cronies to growth richer. When these cronies run out of cash, they will use the fund money to bail them out like other authors had mentione earlier.

ragawasamy

its a typical racist policy-its that simple this has been going on ever since the great mahathir …

joe

It’s simple.

The bumis get more than the non-bumis(EPF).

Most LTAT contributors are bumis and ASB contributors are bumis.

EPF contributors are mostly from the private sector which is predominantly non-malay.

caravanserai

EPF declared 5.8% With its massive funds totaling something $280 billion We should imagine the returns high Yet it was a poor payout It is sad really When our fund never runs properly It is used to help cronies Running into troubles RHB bought for over $1.5 billion All pending cases against Rashid Hussein dropped So what now about the lost money? Write it off as bad debts……….. And about the losses in MBSB Pumping hundred millions Yet it didn’t show a quickly returns I read somewhere it has recovered Mildly in its assets employed EPF pays rental a $1… Read more »

Confused

I don’t understand – how can EPF with so much funds invested give us so little dividend. And LTAT (with i don’t think have much funds) give dividend more than double that of EPF.
We should have a new GOVERNMENT to get EPF to invest properly so that EPF contributors can get much better dividends.

hamidibrahim

EPF FUNDS As you know I am old timer being in public service from 1955 even before independence. The idea of EPF was for workers to benefit from the funds – it was so until 1980. We had great leaders PP Narayanan and V.David who were members of the Board and there was protection for the Fund . David was my housemate in Klang Road in 1955 – 1956. They were members of the EPF – and they were really protecting the FUNDS from being misused. But then came Maha came – now, (under) Mahathir, ….the FUNDS (were allowed to… Read more »

hamidibrahim

Dear Anil What is wrong in accepting Roses from the children as matter of love – you only give roses – when you love a person. -no our PM does not want it – instead he used gun – to spray the children and protesters – which is part of democractice process Please if you have time, watch channel 203 Astro which is based on Aliran ‘Motto’ – Justice free and democracy. Yesterday, My son Nasser bought a book for me – Judges the Judges by N.H. Chan. I was reding it for half 4.15 to 4.45. A first class… Read more »