I’m quite disappointed to learn that half the money (RM5 billion) that will be spent on sustaining the share market is actually our money. The government is taking a loan from EPF to hand over to Valuecap and the latter will invest in undervalued blue chip stocks.
It’s not that this move to sustain the market is not a good move, I just don’t quite agree with using EPF’s funds to buy into stock market. EPF funds should be used for less volatile investments because you are talking about people’s hard-earned retirement funds. Especially now when we are headed into a future of uncertainties and the market is not likely to come back up anytime soon.
RM5 billion is a lot of money to gamble away, albeit in blue chip stocks. From the way I see it, we could all be expecting a dividend payout of less than 5.5% from EPF next year.
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That’s a crappy decision. At first I thought they are going to use our taxpayers’ money. OK, FINE since gov money is from us anyway. But to use our retirement fund? That’s pure nonsense. So if they burn away the 5 bill, does that mean our government is going to declare bankrupt or the VALUECRAP is going to tutup kedai and said “oh, we messed up” and the 5 bill gone.
That sure sounds very convenient as a way out. But for all our sake, I really hope their investments won’t screw up.