Malaysians are aghast to learn about the UMNO led government’s plan to utilise RM1.5 billion from the country’s pension fund (Employees’ Provident Fund or EPF) as housing loans to Malaysians who do not qualify for such loans from conventional banks!

Talk about risk management!

Of course, this will make UMNO and their ilk look good in the eyes of the ‘down-trodden’ or economically backward Malaysians.

UMNO is desperate to be portrayed as the Robin Hood of Malaysia whereby they ‘re-allocate’ (read: steal?) from the “RICH” in order to help the “POOR”!

I didn’t realise that the EPF monies belong to RICH Malaysians only!!

The ‘holding statement’ provided by Najib and his cohorts, when questioned about the deal was that ;-

  • ‘the amount lent is a small proportion of the funds held by EPF’  

  • ‘the value of the houses are much higher than the loan’ 

  • ‘the houses could be easily sold and monies recovered would fully settle the loan’

  • ‘it shows a caring government’!

Boy, talk about a story line bereft of any substance!

Malaysia’s sad financial predicament today is a cumulation of all these ‘small leakages’ during UMNO’s rule especially since Mahathir’s administration.

It has been reported that these housing loans would be provided by a listed company, MBSB Berhad, a subsidiary of EPF.

Since MBSB does not have that kind of money, it obviously has to be transferred from EPF ….. most probably as an advance ….. unless of course, EPF plans to increase its shareholding in MBSB from its current 70% or so stake!

So, is the UMNO led government creating something that is not sustainable …….. similar to the triple-A rated sub-prime loans in the United States that precipitated the devastating 2007 economic crisis?

Are those loans (to those not qualified for conventional loans) from EPF ever going to be repaid?

Or are they to be ‘rolled over’ in perpetuity …….. similar to some of the bonds and private debt securities currently outstanding in the local bond market?

A good indication of this is the extended concession period of the recently awarded West Coast Highway …… to 60 years as compared to normal 30 years in the past.

This means nothing more than ‘paper’ profits attributed to those housing loans ……. and any actual cash payment will just be an exercise involving ‘taking monies out from the left pocket and paying it into the right pocket’!!

In other words, Malaysia is seriously moving to the next level of DENIAL ….. something that is close to the point of no return for EPF’s monies!

Is it no wonder that the Malaysian Chinese have deserted the UMNO led government including its two Chinese based concubines, MCA & Gerakan?

Hey, it’s those blinking Chinese who make up most of Malaysia’s tax payers ……. thereby logically inferring that EPF monies also comprise mainly Chinese contributors in terms of share of those funds.

Chinese are known to be disinterested in the political running of a country ……. so long as the environment and ‘political climate’ is conducive for economic activity and savings, for most of them anyway! 

Now with nearly the entire Malaysian Chinese block not intending to vote for the UMNO led Barisan Nasional, it spells the loss in belief in that political grouping to provide the leadership in running the country, Malaysia!

Until and unless this fundamental GAP is satisfactorily filled, and with the Malay vote split between the ‘haves’ and the decent ‘haves’ and ‘have nots’, the going will only get tougher for the UMNO led government!

Click HERE for the RM1.5 billion HOLE for the Rakyat’s EPF money!


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