KUALA LUMPUR (August 2): Asset liquidation by the Employees Provident Fund (EPF) remains based on the “normal course of business” of the EPF itself without any specific liquidation to cover withdrawals under the i-Lestari, i-Sinar and i-Citra schemes as well as the special one-time withdrawal of RM10,000.
In a written response dated August 1 (Monday) which was uploaded on the parliament’s website, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said that any purchase and sale of investment assets by the EPF are subject to investment portfolio rebalancing activities.
This is guided by EPF’s Strategic Asset Allocation (SAA) and aims to generate tangible and distributable income for the payment of dividends to members.
“ETH takes a disciplined investment approach and strong SAA-guided liquidity management, which reduces the impact of declared withdrawals on the EPF portfolio.
“This is important to ensure that ETH’s investment objectives of protecting and increasing the value of members’ savings can be achieved, especially in these challenging times,” Tengku Zafrul said in response to a question. question from Semporna MP Datuk Seri Mohd Shafie Apdal who had asked the Minister of Finance to clarify whether EPF investment assets in Malaysia and overseas are being liquidated to cover special withdrawals previously authorized under of the different regimes.
Tengku Zafrul noted that ETH is also receiving healthy monthly net contributions as well as consistent cash inflows through the maturity of investment instruments and the generation of investment income.
“As a pension fund with total assets reaching RM1 trillion, EPF always guarantees sufficient cash balance to meet all needs and expenses,” he added.
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