Guan Eng: EPF’s loss of RM6 billion only a ‘paper loss’

(MMO) – The Employees Provident Fund’s (EPF) reported loss of RM6 billion in shareholdings after the general election is entirely book value, said Finance Minister Lim Guan Eng.

In a written reply to Tenggara MP Datuk Seri Adham Baba, Lim said the fund did not lose any actual money as the current share values were still above their initial purchase prices.

The minister added that share prices were prone to volatility and said a snapshot of the stock market cannot be used as a result to determine the outcome of any of the EPF’s investment in companies.

“The daily movement of the FBM KLCI does not jeopardise the allocation of dividends by the EPF as it is its policy to declare these based on net profits,” he said.

Adham asked the government what it was doing to mitigate the reported losses.

It was previously reported that the EPF lost approximately RM6.1 billion after the share prices of 10 companies in which it held equity declined following the general election.

Lim also added that the Malaysian stock market is outperforming others in the region.