KUALA LUMPUR – Allegations that the Employees Provident Fund (EPF) suffered losses from the sale of Malaysia Airports Holdings Bhd (MAHB) shares are unfounded, according to the Finance Ministry (MoF).
MoF explained that the voluntary offer by a consortium of which EPF is a member to take over all MAHB shares not yet owned at a price of RM11 per share is a new long-term investment by EPF.
“This investment aims to ensure long-term returns by taking into account the stable nature of infrastructure assets that are capable of generating cash flow consistently as well as the potential for continued growth in the number of passengers.
“This strategy is in line with EPF’s objective as an institutional investor that prioritises sustainable returns for the benefit of members,” the MoF said in a written reply on the Parliament website today to a question by Datuk Azman Nasrudin (Padang Serai-PN) regarding the reason for selling MAHB’s shareholding by the EPF at a price of RM5.40-RM7.36 per unit in 2023 and then buying it back at RM11 per unit.
The MP also asked MoF to state the total amount of losses incurred by the fund as a result of the transaction.
The ministry explained that all sales activities have been carried out with the approval of the internal committee and comply with the fund’s established framework.
“EPF has recorded positive income from active trading activities as well as dividend accumulation throughout its investment in MAHB shares since 1999.
“Overall, since 2014, the total income from MAHB shares has reached more than RM500 million,” it said.
MoF said the sale of MAHB shares by EPF equities fund managers in 2023 on Bursa Malaysia is part of EPF’s active trading strategy to take advantage of share price movements and generate short-term investment income.
MAHB shares were sold at prices ranging from RM5.40 to RM7.36 per unit, generating income totalling RM100.7 million for part of EPF dividend distribution for the 2023 financial year, the MoF added.
The performance of MAHB’s shares, which outperformed the FBM KLCI by 11.47%, was also a key factor in this strategy, it said.
On the question of the RM11 per share price for the voluntary offer, MoF said it should be noted that there is a difference between the trading of MAHB shares in the market and the implementation of a voluntary offer on MAHB.
“Share trading, including MAHB shares, is managed by EPF fund managers as well as external fund managers and involves buying and selling shares at fluctuating market prices based on supply and demand on Bursa Malaysia,” according to MoF.
The ministry said, on the other hand, the voluntary offer by the consortium of which EPF is a member, is evaluated and made by a team completely different from the strategic investment team.
It also said the mandates of these two parties are different, with the main objective of EPF fund managers being to generate profits to ensure dividend payments can be distributed to EPF members. – February 18, 2025