‘EPF EXPECTED TO MANAGE RM1 TRILLION IN TWO TO FIVE YEARS’
This is based on market performance and contribution growth, says incoming CEO
THE Employees Provident Fund’s (EPF) asset under management (AUM) is expected to breach RM1 trillion in two to five years, said incoming chief executive officer (CEO) Tunku Alizakri Alias.
Tunku Alizakri, who is currently deputy CEO of strategy, said this was based on the expected market performance and contribution growth during the period as well as introduction of new schemes for contributors.
As at March 31, EPF’s AUM stood at RM814.38 billion, he said on the sidelines of the International Social Security Conference 2018, here, yesterday.
The country’s largest pension fund has invested in some of Malaysia’s largest companies as well as foreign assets, such as the Battersea Power Station project in London.
EPF is the biggest investor of Malaysian stocks and reportedly owns more than five per cent stakes in many listed companies, including Sapura Energy Bhd, Telekom Malaysia Bhd, Tenaga Nasional Bhd, Malayan Banking Bhd, Media Prima Bhd and builder Gamuda Bhd.
Its equity investments accounted for 41.6 per cent of its total assets, according to its statement released in June.
Alizakri, who will take over from Datuk Seri Shahril Ridza Ridzuan on August 20, said the fund would be more proactive in its operations with the introduction of digitalisation, which was part of its five-year plan.
“It is going to be exciting for our members as the majority of them are going to be young people who are digitally connected. We are going to start looking at the individual needs of members in that sense.”
He urged those in the workforce to start contributing to EPF for their retirement.
“In the last four years, more emphasis has been placed on social security. It is a top priority for the government. A lot of resources (and) focus are now being put on that.
“For me, this is the right direction. You need to make sure that Malaysians are well taken care of,” said Alizakri.
Meanwhile, Shahril, who will succeed Tan Sri Azman Mokhtar as Khazanah Nasional Bhd managing director on August 20, said EPF used three benchmarks in carrying out sustainable operations in the face of economic uncertainties.
He said they were integrity, good governance and outstanding service to ensure the continuity of the organisation.
“As a leader of an organisation, I think it is always important to leave the company in a better place than when you first joined. In EPF, our staff are all a real team. So, I leave knowing that the EPF is in very good hands,” he added.