EPF, KWAP Hope To Pursue More Overseas Investments

KUALA LUMPUR, March 20 (Bernama) -- Flush with funds, the Employees Provident Fund (EPF) and the Retirement Fund Inc (KWAP) are pushing for more overseas investment as they are constrained by mandates set by Bank Negara Malaysia (BNM). EPF chief executive officer (CEO) Tunku Alizakri Alias said at the moment, 28 per cent of its assets were overseas. “We are flush with cash and we are growing every month. Every month or so, on a net basis we get RM1.5 billion to RM1.9 billion. “Very soon, we will be a RM1 trillion fund. So, the real challenge is where do we put this cash?” he said during a panel session titled “New Mandates, New Opportunities” held at the Invest Malaysia 2019 capital market forum here Tuesday. Currently, EPF has RM833.76 billion total assets under management. Meanwhile, KWAP CEO Syed Hamadah Syed Othman said the fund was in talks with BNM to increase its mandate for overseas investments and if successful, it planned to mainly invest in private equities. KWAP’s overseas assets stood at 13 per cent of total assets. During the session, Tunku Alizakri expressed concerns over declining EPF contributors, which fell to the current 40 per cent of the working population from 48 per cent five years ago, due to the growing freelance economy. “There may be a day when EPF no longer exists. So, the challenge for EPF is how to remain relevant,” he said. The EPF CEO said as Malaysians age, growing withdrawals might also result in cash constraints to EPF. “We are going to be an ageing nation very soon. Conservative numbers show as early as 2030,” he said. Tunku Alizakri said the fund needed to come up with more services to attract people, especially the youth, to save with EPF while encouraging retirees to make their withdrawals in phases. “We invite companies to partner with EPF for a long-term investment collaboration,” he said, adding that it might be timely for EPF to look at investments in early technology adopters. -- BERNAMA