QUESTION NO. 8:
Dr. S. Ramakrishnan ask the MINISTER OF FINANCE to state:
(a) A list of companies wholly owned by the EPF and the businesses they run and how much is invested in each company; and
(b) Why EPF has full ownership of the company since EPF is an investment corporation and have no expertise and also experience in the business field.
Y.B. SENATOR DATUK DR. AWANG ADEK HUSSEIN
DEPUTY MINISTER OF FINANCE
(a) List of companies owned in full or 100% ownership by the EPF and the number of investment funds are as follows:
|1||Kwasa Properties Sdn. Bhd. (KPSB)||521.7|
|2||Affordable Homes Sdn. Bhd. (AHSB)||17.1|
|3||Kwasa Land Sdn. Bhd. (KLSB) – setakat ini||RM2.00|
|4||Kwasa Global (Jersey) Limited||1,675.2|
|5||KWSP-KWAP (Jersey) Limited||770.2|
|6||One Sheldon Square Limited||770.2|
|7||Portman Square (No. 1) Limited||895.95|
|8||Portman Square (No. 2) Limited||9.1|
These companies are involved in the field of real estate investments whereby the primarily established for the purpose of representing the interests of the EPF’s investment in the sector but only one company which is Affordable Homes involved in property development joint venture.
(b) EPF’s investments in these companies is decided by the Investment Panel is made up of professionals with expertise and experience in the field of investment. At the management level, the EPF has a team of professional investment management. The investments made are in line with the EPF Act 1991 and the current regulations.
In addition, investments by the EPF in the company is able to contribute to economic growth, increased business activity, create jobs, generate higher returns to the EPF and reducing investment risk. This item can be explained based on the objectives of each investment as follows:
- Kwasa Properties business activities is the holding company that leased property to the GCH Retail (Malaysia) Sdn. Bhd.. The Giant hypermarket business. At this time, Kwasa Properties is used as the property investment and it is not involved in other business activities;
- Establishment of the Affordable Homes will aim to develop low-cost housing projects and affordable space in the joint venture in the Taman Alma Ria, Bukit Mertajam, Penang;
- Kwasa Land is real estate investment company established for the management of property development projects such as development RRI land in Sungai Buloh; and
- The establishment of five more companies are intended as EPF real estate investment company for investment programs in overseas. Foreign investment objective is to maximize returns on investments in which the companies incorporated in Jersey will benefit from lower taxation of investments in the United Kingdom. In addition, the establishment of companies for overseas investment is part of the mitigation program of EPF risk where the investment risk is limited only to the subsidiary alone.