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What’s Wrong Invest KWSP Fund In United States?

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Actually I am quite surprise the way some opposition politicians jumping like Kera Makan Cili after Najib’s pledge to invest in US. What is wrong with this pledge? Giving a gesture such as “We want to help you economically” is not wrong at all.

Simple theory: I HELP YOUR ECONOMY, YOU HELP MY ECONOMY!

Funds like KWSP, Tabung Haji, FGV need to be invested instead of frizzing inside banks. We have to invest somewhere to have better returns so we can pay good dividends to the contributors. And this investment can be inside or outside the country to maximize the Return of Investment (ROI). And United States is always one of the right country with strong economic foundation for investment. We not only will bring back better margins, but also the talents and technology along if we did the right investments. Invest means not just dumb the fund into US banks or send the money to White House in trucks. But invest our business there, bring our company into US and take up projects, in this case infrastructure projects. Similar to what all Multi-National Corporation (MNCs) doing around the world. Koreans invest in Solar Technology in German, and now they are the leading solar-energy producer in the world.

DMIA Sdn Bhd has invested hundreds of millions and built tolled roads in India, Minamas Plantation – Sime Darby Group in Indonesia, CIMB and Maybank in some Asian countries. We have hundreds of Malaysian companies around the world. Petronas has invested in 65 countries around the world with total investment around RM50.4 Billion in 2016 and 20% is in overseas which is approximately RM 10.08 Billion. And KWSP is the third major shareholder in Petronas with equity 3.69%. KWSP fund has already been invested long time ago in overseas in a “volatile” oil and gas industry. But no one, not even one opposition leader made any fuss about this.

By 1994 we have invested around RM 585 Million in Asean countries with Singapore topped at RM535 Million. Among other top 5 countries around the world we has invested is European Countries RM287 Million, United Kingdom RM275 Million, Hong Kong RM271 Million, United State of America RM142 Million and Australia RM111 Million. By 1994 alone, our Outward – Foreign Direct Investment (OFDI) is accounted at RM1.7 Trillion. (And we are talking about Tun Mahathir era).

For ages KWSP fund has been invested in various business and projects in and outside Malaysia. KWSP shouldn’t just keep the fund inside bank for 3-4% interest rate per-annum. They are giving the contributors around 5-6% dividend annually, which is higher than any bank’s fix deposit. When comes to investment, there is always risk. Not all investment yield good returns. But government fund managers and investment machineries will do proper risk management before investing somewhere.

Such investments in and outside country is norm and within the boundaries of good financial practice and our fund managers is not stupid. So what is wrong for government to invest in United States and in some other countries now? Please do some homework! – alexchandran.wordpress.com

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