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?
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.