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Deputy Finance Minister Awang Adek Hussein said the 15 GLCs are big concerns
that promise high returns for EPF contributors.
<p>"Returns for the contributors is one of the criteria considered by EPF
before making an investment decision, that’s why EPF only invested in a handful
of GLCs only," he was quoted as saying by Bernama.</p>
<p>He was responding to a question from Senator Omar Faudzar in the Dewan Negara
today.</p>
<p>Awang Adek said EPF also provided loans worth RM5.2 billion to some of the
15 GLCs.</p>
<p>The number of investment and loans only represent eight percent of EPF’s total
assets worth RM264 billion.</p>
<p>Replying to Senator Dr Norraesah Mohamad, he said, EPF at present has less
than 45 percent stake in the Malaysian Government Securities (MGS) in the form
of bonds.</p>
<p>"Prior to this, EPF’s stake in MGS accounted about 75 percent. The stake
held by EPF in MGS is on the decline due to the smaller bons being issued by
the government in the open market.</p>
<p>"Apart from that, the EPF too needs to invest in other instruments including
shares to provide greater returns to contributors.”</p>
<p><b>Keeping TNB strong</b></p>
<p>In another development, Deputy Prime Minister Najib Abdul Razak said the government’s
decision to ask Tenaga Nasional Bhd (TNB) to reduce half of its electricity
supply reserves was to ensure the utility giant would continue to be in a financially
strong position.</p>
<p>He said the group’s position should also be viewed from a wider perspective
including those related to its contracts with the Independent Power Producers
(IPPs).</p>
<p>"The matter is also related to the IPPs’ position, high reserve margins,
that is why we must see the overall aspects including whatever contracts signed
between TNB and the IPPs," he said.</p>
<p>Najib was commenting on the government’s decision to ask TNB to reduce the
national power reserves to 20 percent from 40 per cent currently to avoid the
company from being insolvent.</p>
<p>At the same time, he said the reduction in power reserves would be in accordance
with international practices, which were usually at 20 percent.</p>
<p>"TNB’s reserve margin has so far been maintained at 40 per cent and this
means part of TNB’s finances are already tied.</p>
<p>"However, TNB’s position must be seen in its entirety to ensure the group
becomes financially strong and stable," he said.</p>
<p>Asked whether the directive would help the government maintain the present
electricity rates, he replied:"I can’t give any assurance, the matter is
being given due consideration by the cabinet, we have to have wait for the cabinet
decision.</p>
<p>"That is why, as I said earlier, TNB’s position should be seen as a whole,
including the tariffs to be imposed later," said the deputy premier.
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