epf in trouble2

8/3/2019 EPF in Trouble2

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Is the EPF being looted?

On the 23rd

of June 2011, the EPF (KWSP) tabled its annual report to the parliament, declaring a 5.8%

dividend and explained that 27% of its investments were in Malaysian Government Securities (MGS) and

32% were in loans and bonds to Govt agencies. A simple chart below summarises the report. At RM

440.52 billion, the EPF is one of the largest funds in the world and represents the life time savings of 12million private sector employees.

The question is why is it that over 60% of EPF funds are in loans to the Govt and Govt bodies? Is the

Malaysian Government a good borrower?

Let’s look at the BN Govt’s financial record….

Below is a summary of the Govt’s annual deficits. The 2012 budget will mark the 15th year of budget

deficit with no signal of financial prudence. And as you can see below, there have been supplementary

budgets on top of the annual budgets every single year.

EPF annual report 2010

MGS 27%

Loans/Bonds 33%

Equities 35%

Money Market 5%

http://2.bp.blogspot.com/-KSjcAdxLVxY/TpBHwBhS21I/AAAAAAAAAu0/ua1kWViMpYg/s1600/supplementary.bmp



As you can see above, the 433 billion owed by the Govt is represented by the red and Orange bars. On topof official figures, an additional 184 billion is owed by various Govt agencies.

Take a look here at another explanation,

So…. Is the EPF being looted? I say yes it is. Let me explain how.

A summary on the 2012 budget is below,

Of the total 233 billion, total operating expenses is at 162 billion and over 64 billion is allocated for the

civil service in pensions and wages. Of the massive 233 billion, only 51 billion is going to development,of which over 80% is to construction projects, designed to specifically benefit a few lucky fellows. And

talking about lucky fellows, over 10 billion in subsidies paid for by us, are being paid directly to

corporate bodies!

And how pray tell will they pay for all this? By borrowing of course! Do they even bother that it is we

who will be paying for the debt servicing including interests? Najib even announced that employee’s

contribution to the EPF will increase to 12% of salary. Which means even more will be tied up in the EPF

Budget 2012 where it goesSubsidies 22B

Corporate Subsidies 10B

Civil Service pay 64B

Development 51B

Operating Expenses 88B

http://4.bp.blogspot.com/-Kxm7jcdn2Qg/TpBHp1rQ8lI/AAAAAAAAAus/rC-M_yEqw_c/s1600/total_debts_nos.jpg



they are using our funds in the EPF to run all these excesses, to enrich themselves, and to bribe the civilservice into loyalty.

We EPF investors are 12 million. Vote against corruption, vote against poverty, and vote against the

looting of your EPF savings.

epf in trouble2

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