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Directing EPF’s investments back to Malaysia: The pros and cons, and the better path

Tong Kooi Ong & Asia Analytica
Tong Kooi Ong & Asia Analytica • 11 min read
Directing EPF’s investments back to Malaysia: The pros and cons, and the better path
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Prime Minister Datuk Seri Anwar Ibrahim has called on the Employees Provident Fund (EPF) to reduce its overseas investments to no more than 30% of its total investment assets by the end of this year, in favour of supporting the domestic capital markets, strategic industries and infrastructure investments. We wrote about the same idea in this column back in 2021 (you can scan the QR code for the full article, “Addressing structural weakness for Bursa’s underperformance”, published on Jan 18, 2021) — and decided to revisit the subject this week, in light of recent developments.

There are obvious benefits as well as drawbacks, with long-term consequences for the rakyat — and, as such, we think it is important to understand and carefully take all the implications into consideration.

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