> Young Christians on ValueCap loan
The Council of Churches of Malaysia (CCM) Youth Council views positively Finance Minister Datuk Seri Najib Razak's policy response to the global financial crisis, but is concerned over the RM5 billion Employees Provident Fund (EPF) (Kumpulan Wang Simpanan Pekerja) loan to ValueCap.
In a press statement yesterday, Chrisanne Chin, CCM Youth moderator and exco member said that "government guarantee" on the loan to the state investment company "becomes worthless as it does not protect investors from looming sovereign credit risks."
"The utilisation of this money is not for productive purposes that can produce a desired multiplier effect on the overall economy. We continue to ask the Finance Minister to exercise prudence and not to ape the expansionary "borrow-and-spend" approach of US and the UK.
"By borrowing to spend, we are postponing the inevitable, and exposing ourselves to a real risk of economic disaster," she added.
The use of EPF funds to invest in undervalued stocks via ValueCap Sdn Bhd has come under fire from the opposition since it was first mooted and Najib indicated on Tuesday that he would proceed with the move despite revelations that the company had an outstanding RM5.1 billion debt in maturing bonds to pay off in Feb 2009.
CCM Youth however, lauded Najib for several proposals such as the voluntary 3 per cent reduction in EPF contribution to give Malaysians higher disposable income and an additional RM1.2 billion funding for low and medium cost housing.
It also praised the moves to liberalise commercial real estate and extension of hours for hypermarkets but feels that more initiatives should continue to be considered for vulnerable segments of society -the pensioners and the aged, single parents, jobless, the sick, the poor, the disabled, and children - as global conditions will remain difficult into 2009 and 2010 - The Malaysian Insider.
The Finance Minister has no business to touch EPF money! See my numerous comments elsewhere on this issue. - My Journal.
