Who is Valuecap helping with EPF’s RM5b?

16
399

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.

Please help to support this blog if you can.

Read the commenting guidlelines for this blog.
Subscribe
Notify of
guest

16 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
alamghaib

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.

Sewel

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.

hrw65w

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!

Shanmugaratnam

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***.

DanielYKL

Who is really behind Valuecap? Will our money go down the drain?

http://www.danielykl.com/blog/2008/10/25/the-valuecap-bailout/

john

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.

Puzzled

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.

Kean

Can I stop the 11% contribution of my salary to EPF? I had enough of all these cronies bail out!

Johnny Cheah

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!

Han2

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… Read more »

telur dua

Relatively, it is only a drop in the Bursa KL ocean, but (probably) plenty for bailing out crony companies.

bennyloh
Moonrider

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 ..

bennyloh
wandererAUS

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 …

Ken

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… Read more »