Socso strengthens investment team

> Social security agency seeks higher returns and income to sustain benefits

KUALA LUMPUR: The Social Security Organisation (Socso) has been beefing up its investment department to improve investment performance and sustain the benefits covered by its schemes.

Socso has total assets under management of RM25.8 billion as at June 30, 2017 and it aims to achieve returns of at least 5% to 6% under its new five-year Investment Strategy Blueprint.

CEO/director-general Datuk Dr Mohammed Azman Aziz Mohammed said Socso recently reviewed its investment policy and diversification strategy, and brought in experienced investment personnel.

“We have diversified our investments. Previously, we just invested in equities, fixed income and money market, and now we have diversified into property and private equity.

“We managed to get approval from the Ministry of Finance to add the allocation for different mandates of investment. The governance is there …. we cannot go beyond that,” he told Bernama.

Socso was established in 1971 under the Ministry of Human Resources, formerly known as the Ministry of Labour, to provide social security protection to all employees or workers in Malaysia.

Azman said Socso hopes it can do more in terms of investment with a strong team in place.

“We need returns. We cannot just rely on the contributions alone. The fund is growing but it does not increase in line with the payment we have been giving out in members’ benefits and compensation.

“That’s why we need to diversify, we need to improve the returns and have more income in order for us to sustain for longer years.”

Azman said the organisation’s trust fund concept is pooling of resources and sharing of risks. It does not have to pass on the returns that it receive but it now needs better returns because the base is getting bigger, he added.

“Our recipients are long-term recipients. Every year, you keep adding to the list of recipients that you have. And, every three to five years, we will review the benefits that we provide. – Bernama