PETALING JAYA, Sept 15, 2015:
How will Khazanah Nasional Berhad, Permodalan Nasional Berhad (PNB) and the Employees Provident Fund (EPF) raise RM20 billion for ValueCap to invest in the stock market?
This is the question PKR secretary-general Rafizi Ramli asked, adding that the one thing that was very clear, was that the government will not be providing the funds.
He said ValueCap has liquid assets valued at RM3 billion. Therefore, the government-linked funds will have to raise the money.
The Pandan lawmaker said one option was for the funds to turn to the bond market.
“There is a risk in this. If the the value of the investments drops or fails to go up, the funds will be left owing the bond market the money,” he said at a press conference.
Rafizi also pointed out that ValueCap was a private entity and had no independent investment authority overseeing the investments.
“The worry is that ValueCap may buy shares of companies that are linked either to the ruling elite or party. This must not be allowed to happen.
“If it does then the country’s economic woes may worsen and debts will build up.
“One way to solve the lack of support for the Bursa is rebuild the confidence in the economy,” he said, alluding to the stock exchange.
Rafizi added that this may prevent foreign investors from taking out their money from the local stock market.
He said to build back confidence in the economy, the government needed to take proactive measures which will build confidence among foreign investors.
Rafizi added that unless such measures were taken the slide in the local stock market will continue.