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.