Fund managers view transition of power as positive to spur growth

KUALA LUMPUR: The transition of power from the Barisan Nasional government to Pakatan Harapan was viewed as positive for the country’s economic development by the nation’s fund managers.

Datuk A Kadir Jasin, head of Media and Communication, Team of Eminent Persons, said this was the indication given by fund managers, who witnessed the transition of power on May 10, as they resolved to play their role to help strengthen the economy.

He was speaking on behalf of former Finance Minister Tun Daim Zainuddin, who heads Team of Eminent Persons, whose set up was announced by Prime Minister Tun Dr Mahathir Mohamad yesterday.

Kadir said Daim held a meeting with government-linked investment companies (GLICs), namely the Employees Provident Fund ( EPF), Permodalan Nasional Bhd ( PNB), Khazanah Nasional Bhd, Armed Forces Fund Board and Tabung Haji Group.

“Basically, these are the largest government investment companies and they have a lot of capital and are very active investing in stocks and bonds. So, today Daim briefed them on the high expectation of the people and investors, local and international have, so we have to make sure that we do our best not to disappoint them.

“Essentially, you know that tomorrow Monday will be the first day the market opens after a long election holidays. So, tomorrow will be significant in the sense the market will make its judgement on the new government.

“The local fund managers are very, very big, and they have far more money than the local market can absorb,” he said, adding that their help were sought to make the local market more important the foreign markets that some of them had been investing.

Kadir, who spoke to Bernama News Channel following Daim’s meeting with the fund managers yesteroday, said Team of Eminent Persons would have another meeting with them tomorrow.

He said the fund managers could meet the Team at any time if they have additional information to share with as they (Team) viewed their job as very important as they have 100 days to submit their recommendations to the government.

Kadir said during their meeting with Daim, the fund managers briefed him on their general activities and investments in the stock market.

They also informed Daim what they had done to provide the best contribution and services to the people, especially in view of the change in government. According to Kadir, among the matters raised by Daim to the companies’ leadership was that the government wanted them to operate as professional bodies without any political interference.