[edisi revisit DAP 8 tahun kendian] : Dulu pasal EPF beli RHB salah. GST ke SST

kabukiman

kabukiman

Sunday, March 11, 2007
EPF Takes On Big Risks
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On Thursday, it was announced that our Employees Provident Fund was successful in acquiring Rashid Hussain Berhad, which owns RHB Bank. As a response objecting to the EPF acquisition which implies a very significant increase in the risks undertaken by the EPF board which may jeopardise the hard-earning life savings of Malaysian workers. The reasons are many, and the arguments are straightforward.

Interestingly the Prime Minister, Datuk Seri Abdullah Badawi, who is also the Finance Minister responded directly to my statement, appearing on the frontpage of the Star yesterday. His key message of assurance was that "the Employees Provident Fund was aware that it is dealing with public funds when it considered investing in the RHB banking group... Don’t tell me they are playing around with money." Judge for yourself if such an assurance is sufficient.

    No Expertise

    EPF has neither experience nor expertise in owning or managing a commercial bank. While the other competing offers originates from existing banking institutions seeking to enhance and optimise their current branch network to enjoy economies of scale, the EPF will enjoy no such benefit from acquiring RHB at premium prices.

    Both owning and managing a commercial bank are complex tasks requiring competent and experienced professionals. It wasn't too long ago in 1999, one of Malaysia's leading conglomerate, Sime Darby Bhd was left red-faced as they were forced to sell Sime Bank, which they took over a mere 4 years earlier. Sime Bank was left with nearly US$500 million of non-performing loans during the Asian financial crisis.

    Sime Darby's acquisition of Sime Bank, formerly known as UMBC Bank, is a clear example of the risk in owning and managing a bank without the necessary expertise and experience. Prior to disposing of the Bank in 1999, Sime Darby Bhd recorded losses of RM541 million in 1998.

    Disproportionate Amount of Risks to EPF Contributors

    Based on EPF's 2005 Annual Report, out of its total fund size of RM260 billion, 19.1% or RM49.6 billion was allocated to Equity investment. Hence EPF's RM9 billion RHB acquisition venture represents more than 18% of its total equity investments, without even taking into accounts its existing investment in RHB. Such disproportionate amount of investment in a single stock clearly represents poor portfolio allocation and diversification. The EPF has put at risk our workers' funds by 'betting' heavily on a single large investment.

    In addition, the total risk of the bank is 12.5 times its equity value based on a minimum capital-assets adequacy ratio of 8% in Malaysia. This means that in the event of a crisis, for every ringgit investment, up to RM11.50 may be required to bail out the bank and keep it afloat. Will EPF, acting as the owner of the bank, be committed to pump in additional monies from EPF to “rescue” the Bank in the event of another financial or banking crisis?

    The Malaysian Government has spent more than RM3.5 billion to bail out Bank Bumiputera on 3 separate occasions in 1984, 1990 and 1998. Will EPF in effect, act as a bail out fund for the bank it now owns?

    Distraction from Fund Management

    The acquisition of a Bank by EPF will not only change its charter and increase the risk to the fund contributors, it may also cause poorer performance in its fund management objectives. By redirecting the Fund's attention to the onerous responsibility of owning or even managing a commercial bank, fund management may inadvertently become a secondary concern for the EPF management.

    Throwing Good Money after Bad

    As it stands, the EPF's existing 31.7% RM2.3 billion stake in RHB is worth no more than half that amount today, even after the recent rally in RHB stock prices fuelled by the competing bids for the Bank. At its low in 2005, EPF's investment was worth only about RM115 million!

    Any attempts to average down the cost of EPF's stake in the bank without an independent look at where RM9 billion will be able to generate better and less risky returns will just be a case of throwing good money after bad.

    Is EPF telling us that RHB Bank is the only bank worth investing in, with the best prospective returns amongst all banks in Malaysia? Is RHB so attractive an investment that EPF must make an attempt to acquire all of its shares and take on the risk of ownership themselves? In addition, will owning RHB taint the Fund's independence when valuing shares of other Banks, raising potential conflict of interest issues?

    Regulatory Uncertainty

    Under Malaysian laws no Corporation can own more than 20% of a banking institution. RHB owns 65% RHB Capital, which in turns own RHB Bank. With EPF acquiring up to 100% of RHB, it will mean that at some point of time, it will have to divest as much as 45% of its investment in RHB Capital to other interested and approved parties.

    There is no guarantee that EPF will be able to secure buyers of this substantial stake higher than or at its GO prices. Any negative turn of events in our stock market may very well result in EPF suffering immediate losses if the block had to be placed out at lower than its GO prices.

    To a large extent, the EPF is risking a substantial portion of our funds to the whims and fancies of our stock market.

    Supported by EPF's Investment Panel 'Professionals Representatives'?

    Finally, it should be noted that EPF's 7 member investment panel comprises of 3 “Professional Representatives”, two of whom are Datuk Amirsham Abd Aziz, CEO of Maybank Berhad and Datuk Mohammed Nazir Abdul Razak, CEO of CIMB Bank.

    Can we confirm if the 2 key investment panel members are in agreement with the EPF board's decision to acquire RHB Bank? And if not, is the EPF board acting recklessly in its investment process by refusing to take heed of advice provided by CEOs of Malaysia's top two banks?

Hence on behalf of DAP, we have called for the Ministry of Finance to block the deal, which still requires its approval to protect the interests of Malaysian workers.

The returns from its existing 31.7% stake may be better if the bank is owned by another competent financial institution, than if they were to own it in its entirety themselves. EPF has absolutely no experience or expertise in managing (or owning) large corporations, much less highly complex financial institutions.

The EPF is not an “aggressive growth fund” seeking to generate 30% returns with equally daunting risks in its investment. The EPF is meant to be an income fund to generate reasonable investment returns and protect the capital of its contributors by taking minimal or at most measured risks in its investments.

We will certainly try to take this matter further.

atira

crystal ball natang apa?

kucingTomey

bebola kristal ...tabola tabola

kecimpret

better laaaa dr kasi kt Felda!

kabukiman

bila tony pua nak jilaT jalan entrance kwsp di jalan raja laut?

sis kabu nak singgah tgk upacara ni sambil menyogo esok.

kabukiman

tony pua nak hoi sin sauce sekali ke?

kucingTomey

tony ja ka wak kasi?

kabukiman

tony ja ka wak kasi?
kucingTomey Post at 1-7-2011 15:36

berbondong2 tucem... one day at a time.. baru panjang hayat umur bebenang ni...

annehuda

EPF gunakan duit pencarum utk melabur...

kalau pelaburan tu untung adakah pencarum akan dpt apa-apa ganjaran?

kalau rugi plak sape yg akan tanggung?

kabukiman

risk-return trade off by professionals ada tanggungjawab dan accountability.


ahli politik mesia lagak bagus dialah terpandai tapi hampas dan kejenya hanya mendajalkan dan melaga2kan orang? what to make of this particular lot of imbecile no moral pricks?

kabukiman

KWSP bakal tanggung beban hutang RHB bernilai RM3.4 billion - Khalid                                                                                                               

Written by Wan Nordin Wan Yaacob

Perkara ini harus dilihat dari segi fungsi semulajadi kewujudan KWSP, pengalaman KWSP dalam industri perbankan, prinsip asas pelaburan dan dasar perbankan negara, kata Bendahari KeADILan, Tan Sri Abdul Khalid Ibrahim ketika mengulas isu pembelian RHB oleh KWSP semalam. Menurut Abdul Khalid, pertamanya, pembelian RHB oleh KWSP akan mengalihkan peranan asal KWSP sebagai pengurus dana yang seharusnya memastikan pulangan kepada ahli-ahlinya dalam jangka masa panjang di antara 25 hingga 30 tahun. "Pada tempoh awal penubuhan KWSP sekitar tahun 50an, KWSP ditetapkan untuk melabur 70 peratus asetnya dalam sekuriti atau bon kerajaan. Ini jelas memperlihatkan sifat semulajadi KWSP yang konservatif, ujarnya. Menurutnya, sejak tahun 80-an, bon kerajaan berkurangan apabila dasar penswastaan diperkenalkan dan ini menyebabkan KWSP terpaksa mengalihkan pelaburannya ke dalam ekuiti, bagaimanapun, KWSP tetap kekal sebagai pelabur yang pasif. "Namun sejak tahun 90-an, pelaburan KWSP dalam bon kerajaan telah berkurangan kepada kira-kira 30 peratus manakala pelabuhan ekuiti telah meningkat dari dua peratus pada tahun 1990 kepada 2005 pada tahun 19 peratus. "Sebagai sebuah badan pengurus dana yang normal, KWSP tidak seharusnya memiliki lebih daripada 10 peratus dalam pelaburan ekuiti. Adalah penting bagi KWSP kekalkan fungsinya semata-matanya melabur dan bukan terlibat dalam pengurusan mana-mana syarikat," tegas beliau. Khalid berkata, berdasarkan rekod, pelaburan KWSP dalam ekuiti sering menghadapi kegagalan atau mengalami kesukaran dalam tahun-tahun kebelakangan ini, antaranya kerugian teruk dalam pelaburan Malaysia Building Society Berhad (MBSB). "Maka mengambilalih kumpulan perbankan tanpa pengalaman perbankan adalah keputusan yang tidak wajar. Ketua Pegawai Eksekutif KWSP, Azlan Zainol sendiri pun mengakui bahawa KWSP tidak mempunyai kepakaran dalam industri perbankan," katanya. Sebagai contoh, pembelian United Malayan Banking Corporation (UMBC) oleh Sime Darby pada tahun 1995 membuktikan gagal dengan beban hutang UMBC selama ini. Selepas itu katanya, UMBC bertukar ke Sime Bank dan terusnya, kemudian  ditanggung oleh kumpulan perbankan RHB selepas pergabungan kedua-dua buah bank tersebut pada tahun 1998. "Kini hutang tanggungan kumpulan perbankan RHB mencecah RM 3.4 bilion pada Ogos 2006 dan dijangka akan ditanggung oleh KWSP kelak, ujarnya.Beliau berpendapat, meskipun KWSP dapat mengawal RHB melalui pemilikan ekuiti, namun KWSP masih tidak berkeupayaan untuk menguruskan kumpulan perbankan tersebut dengan beban hutang yang begitu besar. "Dari segi prinsip asas pelaburan, adalah lebih baik untuk melabur dalam pelbagai jenis pelaburan sekiranya ditinjau dari kaca mata pelabur, namun dengan 75 peratus kepentingan dalam RHB, KWSP tidak akan dapat bertindak adil terhadap bank lain dan ini akan meningkatkan risiko KWSP," katanya. Contohi cara pelaburan Buffet Khalid yang juga bekas CEO Guthrie mencadangkan agar KWSP mencontohi prinsip dan cara pelaburan Warren Edward Buffett, seorang pelabur berjaya dan orang kedua paling kaya dalam dunia. Katanya, pendekatan utama Buffet adalah dengan melabur dalam sekuriti bernilai rendah yang menjaminkan pulangan dan tidak campurtangan dalam pengurusan syarikat. Dengan cara ini katanya, membolehkan KWSP melakukan penjualan atau pertukaran ekuiti tanpa sebarang ikatan. "Sekiranya kerajaan benar-benar ingin mengurangkan jumlah bank dalam negara untuk meningkatkan persaingan di peringkat antarabangsa berlandaskan dasar perbankan negara, kerajaan tidak seharusnya menggunakan KWSP untuk matlamat ini," katanya. Bagi Khalid, kerajaan sepatutnya, melalui Bank Negara mengarahkan mana-mana bank dalam negara untuk bergabung dengan kumpulan perbankan RHB seperti yang berlaku pada awal 90-an bagi mencapai matlamat tersebut. "Jika kerajaan 'berkeras kepala' ingin menggunakan KWSP untuk membeli RHB, nescaya tindakan ini akan menjejaskan hidup berjuta-juta rakyat Malaysia yang menjadi pencarum," katanya tegas.- mr

putput

kalu rugi lelong je rhb tu...duit bagi2 kat pencarum

kabukiman

to be fair; khalid ibrahim mempersoalkan traditional risk profile EPF.

slippergombak

sis kabu pernah jadi CEO guthrie ka..?

kabukiman

dan relevannya?

kabukiman

Mahfuz: Kadar dividen rendah tanda pengurusan KWSP tidak cekap

25 Apr, 03 10:44am

Dewan Pemuda PAS Pusat (DPP) memandang serius kemerosotan berterusan bayaran dividen Kumpulan Wang Simpanan Pekerja (KWSP) sejak enam tahun lalu dan menganggapnya sebagai petunjuk kepada ketidakcekapan serta kegagalan pengurusan dan pelaburan KWSP.

Ketua Pemuda PAS, Mahfuz Omar berkata, walaupun KWSP masih lagi mampu membayar dividen kepada pencarumnya, tetapi kadarnya merosot dari 7.7 peratus pada 1997 kepada 4.25 peratus bagi tahun 2002.


--------------i-------


Acara kenduri jilat lantai epf utk mahfuz nak hidang dgn apa? Kuah gulai bewok buleh?

kasmela

Reply 17# kabukiman

Bangang punya Mahpoz!

Unbelievable!

kabukiman

EPF?s RHB buy: A boon or bane?

ASIA VIEWS

Written by Administrator  
Tuesday, 21 December 2010 06:12
AsiaViews, Edition: 11/IV/Apr/2007


There was no widespread celebration when the Employees Provident Fund won the fight for the Utama Banking Group?s stake in RHB. In fact, the controversy has triggered fear in the minds of EPF?s? 11 million contributors about the security of their life savings.

AFTER the Employees Provident Fund (EPF) won the bid for Utama Banking Group (UBG)?s 32.8% share in RHB on March 8, most of the 11 million pension fund contributors, including opposition Parti Keadilan Rakyat (PKR) treasurer Tan Sri Khalid Ibrahim, expressed alarm about the fate of their life savings. They heard that the deal would entail EPF investing a staggering RM10 billion to RM11 billion in initial capital outlay.

What worried contributors was the fact that the EPF had several years ago suffered a huge setback when its financial arm, Malaysia Building Society Bhd (MBSB), went into the red with massive losses of RM1.3 billion.

Thus, the EPF?s venture into banking, an unfamiliar territory for the pension fund, was largely seen as risky. Many felt that the acquisition ?will displace the founding principles of EPF? as a fund manager that must ensure good financial returns to its members within a 25- to 30-year period.

The DAP opposition party promptly warned that the ?acquisition brings about significant risks to the security of the hard-earned savings by Malaysians for their retirement?.

Traditionally, the EPF has always been conservative in its investment approach. In the early years after its formation in the 1950s, the fund invested as much as 70% of its assets in low-risk securities or government bonds. From the 1980s onward, the bonds were reduced when privatisation was introduced, forcing the EPF to transfer its investment to equities. But the fund remained as a passive investor.

By the 1990s, its investments in government bonds had been reduced to about 30%, whereas those in equities had risen from 2% to 19% in 2005 and to 20% in 2006. This could increase to 25% in the future.

?The EPF needs to retain its conservative nature because it is the only long-term fund that is responsible for the welfare of its members,? argues PKR?s Khalid, who once helmed Permodalan Nasional Bhd (PNB) as its CEO.

Contributors are particularly worried because the EPF has no experience in running a bank. They also have not forgotten the misfortune suffered by EPF subsidiary MBSB, which specialises in taking deposits and providing loans for house purchasers. The building society, formerly known as Malaya Borneo Building Society Ltd (MBBS), incurred RM1.3 billion losses between 1998 and 2003.

It however returned to the black in 2004, posting a small net profit of RM5.9 million in the second quarter ended June 30. For 4Q 2006, it posted a pretax profit of RM1.3 million.

?Clearly the MBSB debacle illustrates that the EPF is ill-equipped to manage financial companies,? says former Deputy Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.

Anwar, who is now PKR advisor, says Malaysians have the right to know who stands to benefit from the EPF-RHB deal and whether there was proper due diligence conducted.

?Malaysians have the right to ask these questions because the EPF holds on trust our pension and because Utama Banking Group is clearly owned by a politically-connected family. Malaysians have suffered so many scandals,? he says.

?For many Malaysians, the EPF contributions form the bulk of their savings, and it is the EPF money that helps pay for their homes and education. It is extremely crucial that this money accumulated through a lifetime of work is treated with proper care and consideration,? he adds.

Anwar says increasing the EPF?s exposure by increasing its ownership of RHB does not make sense because the fund claims to ultimately want to sell off a significant stake to other investors.

Why didn't they team up with the strategic partners beforehand? These parties already submitted bids along with the EPF. Why didn?t the EPF negotiate with these parties, which would protect them from exposing a substantial amount of their own ultimately our money questions Anwar.

If the issue is of national strategic interest, then there are other potential government strategic investors that can come in without posing the same risk to ordinary Malaysians. One example is Khazanah (Nasional Bhd), he says.

(Incidentally, in 1996, when Anwar was Finance Minister, the EPF extended RM500 million to Realmild Sdn Bhd to purchase RHB shares. The EPF subsequently accepted MRCB and Media Prima shares as full settlement of the loan owed by Realmild.
(It was also reported that the EPF had begun to acquire RHB shares at a price of RM8 onwards. When the prices saw a steep decline several years later, the fund had to incur a large paper loss. Even at today?s market price, RHB?s shares have not reached that level yet. As at mid-day March 26, the shares of RHB and RHBCap were hovering at RM1.75 and RM4.74 respectively. It was perceived that the fund had made a wrong move in acquiring the shares.

So now that the EPF is buying further into the RHB Group, there are worries that it may be making the same mistake again.

However, EPF CEO Datuk Azlan Parti Keadilan Rakyat (PKR) treasurer Tan Sri Khalid Ibrahim, expressed alarm about the fate of their life savings. They heard that the deal would entail EPF investing a staggering RM10 billion to

kabukiman

Wahhh.. Apakah itu 500 jota utk realmild? Pelaburan prudent-charter compliant natam bewok apokah itewwwww