Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) has called for an independent investigation into the Employees Provident Fund’s (EPF) investment decision involving its shares in Malaysia Airports Holdings Berhad (MAHB).
He criticized EPF’s decision to sell shares at a low price before repurchasing them at a higher price, which he claims has resulted in losses for the rakyat, who are the primary stakeholders of the investment fund.
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He criticized EPF’s decision to sell shares at a low price before repurchasing them at a higher price, which he claims has resulted in losses for the rakyat, who are the primary stakeholders of the investment fund.
Read more at https://bit.ly/3EnP7ou
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00I have to bring it to this noble court,
00:03which is regarding the sale of MAHP shares by KWSP between November 2022 and December 2023,
00:11only a few months before the shares were forced to be bought back for the purpose of privatization
00:17and the expropriation of MAHP from BUSA Malaysia.
00:21In short, according to the announcement made at BUSA,
00:25KWSP in 13 months has reduced their holdings in MAHP from 15.67% on November 26, 2022
00:37to 5.79% on December 28, 2023.
00:43During the time of the sale of MAHP shares by KWSP,
00:47the share price of MAHP was between 6.74 cents on January 6, 2023
00:54to 7.70 cents on September 1, 2023,
00:59which is the lowest and highest price throughout 2023.
01:04Only a few months after KWSP had sold almost 10% of its holdings in MAHP,
01:10there was a media report that reported speculation about the possibility of privatization or expropriation of MAHP.
01:18Look at the age, February 27, 2024, and also the business time.
01:28The media also reported that KWSP created a consortium,
01:32Gateway Development Alliance, headed by Kazana,
01:36and to make a GEO offer at a price of 11 cents.
01:41So, this action has raised a big question in the minds of the people.
01:46This is the strategy of KWSP investment,
01:48the management of deposit funds, which in my opinion is not reasonable at all
01:54because it has resulted in a loss of between 539 to 696 million ringgit
02:02to 116.1 million Malaysians,
02:06who are also members of KWSP.
02:32Mr. Mohamad, let me deal with this.
02:35Earlier, AITAM has stated that KWSP has lost 500 million in the sale of MAHP.
02:43Yesterday, in my speech, I explained that this is not a short sale.
02:47EPF did not lose a cent.
02:50This is a long position.
02:51EPF bought for 2.5 ringgit and sold for 5 ringgit.
02:55Now, if you buy back 11 ringgit,
02:57next time if it goes up to 13 or 14 ringgit,
02:59EPF will profit.
03:02There is no losses.
03:04Not even a paper loss.
03:31Mr. President, let us call a spade a spade.
03:43This is a controversy.
04:01KWSP has issued a statement that does not reflect the policy and principles of integrity
04:07that should have been possessed by the so-called experts
04:10who have been entrusted to manage the investment of Malaysian people's savings.
04:16KWSP tried to explain that the management of investment of KWSP and MAHP
04:20is according to a detailed framework of work and strategy to buy and sell shares.
04:25And they practice the Chinese Wall as a step of the colonial order
04:29to separate the team that manages strategic cooperation from the team that manages private equity investment.
04:36The Chinese Wall is always used by the banking sector
04:40where the division of information involves two separate departments.
04:45But KWSP is not a bank.
04:47It involves the same department, which is investment.
04:51Moreover, KWSP is an investment management institution
04:55that is entrusted with people's money.
04:58Therefore, its role is different from a bank.
05:02Therefore, investment managers should collect all data and information
05:07from all over the world through various channels and share it together
05:11in order to make the right investment decision and benefit all investors of KWSP.
05:18The context is different and what is the use of the Chinese Wall
05:21which eventually lost more than half a billion ringgit of investment money.
05:26I said, KWSP also tried to give an image that KWSP had to sell its own MAHP
05:34because it wanted to pay dividends to all investors of KWSP.
05:38This is like abolishing the act of selling cheaply
05:42and then buying back the MAHP with a higher price.
05:46The main issue is not about ethical and investment regulations
05:51in order to avoid insider trading or the issue of GEOs at 11 ringgit per share.
05:57But the main issue is the weakness of KWSP in making strategic investment decisions
06:03and not being able to manage the dividends.
06:06In short, KWSP sells MAHP shares at a cheap price
06:11from 15.67% to 5.79% only.
06:20Then, it buys back the MAHP to 30% with a much higher price.
06:27What is the logic behind this?
06:28Moreover, the World Aviation Forum held in Riyadh
06:33and the Chinese Aviation Summit, when I was the Minister of Transport
06:37in 2022, had targeted the restoration of the aviation sector in 2024 and above.
06:46This means that the airport tax will be collected.
06:49At this time, why would you want to sell shares to these smart investors?
06:54Let me clarify why this decision was made.
06:58Who ordered the MAHP shares of KWSP to be sold at a cheap price
07:04in such a short period of time?
07:05And then, who agreed to buy back the MAHP shares
07:09at a price of more than 80% of the original price of the MAHP shares by KWSP?
07:15Who benefited from this?
07:17Those who lost, of course, are the general public.
07:20I don't have much time.
07:21Then, in a statement by KWSP on 15 January 2025,
07:26they also emphasized that for 24 years,
07:29KWSP has managed the investment in the airspace,
07:33guided the work structure and strategy to sell and buy shares
07:36in order to ensure an optimal return for KWSP members.
07:43Even so, according to the record of KWSP since 10 years ago,
07:48from 2015 until now,
07:52what has happened is that we have not seen.
07:55And how much is their average?
07:58At least 10% to 16%.
08:02What does this mean?
08:04This means that they have never sold that much at that critical time.
08:11Don't we understand?
08:13There needs to be a GO for a while.
08:14There needs to be a GO and the price is of course a premium price.
08:19People in the village don't understand.
08:22The smart people in the village won't understand.
08:24I don't point my finger.
08:27I say the government must look at this from a more professional perspective.
08:32We don't want to prevent things from happening.
08:35Some people use the term, what?
08:37Optional cost.
08:39If KWSP has sold shares at RM6,
08:42and the price of shares has increased by RM11,
08:45that is RM5 per share.
08:48It is considered as an optional cost
08:50because they did not act to sell at a higher price
08:53which is an optimal return.
08:56Is that right?
08:57Then, this economic loss is not recorded in the financial statement.
09:01But the actual loss, realized loss,
09:04in this case, KWSP really sold shares at RM6
09:09and then bought back at RM11
09:12which means they suffered a direct loss of RM5 per share.
09:17Imagine how much.
09:19What I want to say is...
09:21Wait, wait, wait.
09:23I want to finish.
09:24The time is not enough.
09:25If there is time, I will...
09:27Wait.
09:28So this is just a loss of opportunity.
09:31This is not just a loss of opportunity.
09:35It will also be reflected.
09:37It will be reflected in the profit and loss.
09:41If I sold shares, I did not have those shares.
09:44Then you say, how can I lose?
09:47Yes, but if you sell, how can you profit?
09:50That's right.
09:51Who offered RM9?
09:52It's us.
09:53Not the outside.
09:55KWSP offered RM9.
09:59There is no communication.
10:00That's why I said,
10:01in this case, I suggest a few things.
10:04I think it's right.
10:05It's time for us to see
10:07the improvement of investment SOPs.
10:10Strategic investment such as MSMEs
10:12needs to be controlled by special SOPs.
10:15Strategic investment cannot be sold easily.
10:21In the past 15 years,
10:23it was at least 19% to 16%.
10:26How come in 2023,
10:28it can only sell 57% to 9%?
10:31This is the problem.
10:32That's why I said,
10:34yes, we are supporters of the government.
10:36We should support the government.
10:38But in this situation,
10:39I am defending the people.
10:41Because this scoundrel is the common people.
10:45I feel called to bring this issue.
10:48That's why I suggest
10:50free audit
10:53and transparency.
10:54Immediately carry out a free investigation of this matter.
11:00What has been decided.
11:02That's enough.
11:03We will make a PC outside.
11:04Okay, I will leave as people.
11:06Mr. President.
11:08Mr. President.
11:10Mr. President.
11:12Mr. President.
11:14Mr. President.
11:16Mr. President.
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12:00Mr. President.
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12:52Mr. President.
12:54Mr. President.
12:56Mr. President.