SCwatch


MAS’ “SUKUK CARRIERS” (BOND SUBSCRIBERS) : WHO ELSE BUT THE COUNTRY’S PENSION FUNDS!
June 14, 2012, 6:44 am
Filed under: Airlines, Rakyat's concerns | Tags: , , ,

It was quite inevitable that the country’s pension funds (read: people’s savings) are being utilised to keep a company on ‘life support’.

I am of course referring to Malaysian Airlines’ (MAS) recent announcement that their RM9.0billion bond issue has been substantially subscribed by KWAP, the pension fund for civil servants. Click HERE

The other subscriber has not been announced but is understood to be the Employees’ Provident Fund (EPF), the pension fund essentially for private sector employees.

Bonds issued by a company…..whose current condition had been caused by woeful management practices by politically appointed individuals then….and who were subsequently bailed out by the government.

And during that time, the bail out was using taxpayers’ monies….in the form of taxes paid to the government!

But the situation has gone serious now with the utilisation of the portion of taxpayers’ monies set aside for their retirement.

Meaning that these monies should not actually be put to undue risk!

The fact that this is still being done can only point to the precarious financial position the country is already in.

I hope it is not at the precipice!

Just looking at the utilisation of EPF’s massive RM450billion cash horde can only make one shudder with utter concern……Govt papers (around 33%), Shares (around 28%) and Bonds & Loans (around 30%).

With EPF reported as the ‘biggest player’ in the Malaysian stock market may explain how its index has been able to sustain itself at current levels!

As for the Bonds & Loans, need we say more about how the Bond market has grown so enormous……thanks to ‘subscribers’ like the EPF!

It is inevitable that the returns to these investments will have to be accounted for……and maybe, just maybe…..this may explain why the General Elections have to take place soon……lest the ghastly results of some of these ‘investments’ become widely known to the public at large!!


2 Comments so far
Leave a comment

No investors would touch it even with a ten-foot pole. Just a piece of junk

Comment by Dean

I was suggested this blog by way of my cousin. I am now not sure whether or not this put up is written by means of him as no one else recognise such distinctive about my difficulty. You’re wonderful! Thank you!

Comment by bail agent




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