EPF upbeat on long-term economic outlook

PETALING JAYA: The Employees Provident Fund (EPF) remains optimistic of the long-term outlook of the Malaysian economy following the formation of a new government after the 14th general election, anticipating that any potential short-term market dips would provide opportunities for further investments into the domestic markets.

CEO Datuk Shahril Ridza Ridzuan said: “We have been investing here for a very long time and believe the strong fundamentals of the Malaysian economy remain intact. Short-term volatility is natural given this is the nation’s first experience of a power transition, but the smooth process seen so far will assure investors that Malaysia is a mature democracy and economy.”

The new government’s call for greater enhancements to local institutions’ corporate governance practices and independence, together with greater scrutiny by strong regulators would bode well for the local business environment, he said.

Shahril reaffirmed that the EPF would continue to invest in accordance with its existing principles and stated risk parameters, adding that the pension fund is focused on providing a return to its members of at least 2% above the inflation rate.

“We are further heartened that the manifesto of the new government supports the EPF’s vision of providing a better future for our 13.7 million members. In particular, we welcome the focus on continuously improving the minimum wage framework and encouraging more voluntary savings.”