Referring to a Bernama news report published by The Malaysian Reserve on Dec 3, 2018, entitled “EPF, BNM, KWAP amass investment assets worth RM1.4b”, the Social Security Organisation (Socco) would like to clarify the statistics in the news report regarding its foreign investment assets.
It noted that the statistics were taken from “Laporan Ketua Audit Negara Tahun 2017 Siri 2, paragraph 6.4.4d Aset Pelaburan”. It refers specifically to the increase or decrease in the value of foreign investment from 2016 to 2017.
While Socso acknowledges that the statistics were correct, it said the date should be explained in the right context.
The 99.8% decrease in Socso’s foreign investment value was due to the termination of the foreign investment mandate managed by our external fund manager during that period.
The termination was part of Socso’s asset rebalancing efforts of strategically moving out of Asia Pacific ex-Japan mandate into the global mandate (which was later awarded in mid-2018).
In other words, the organisation’s foreign investment was not experiencing a losing position, but was actually realised into a cash position.
In fact, Socso said it generated an investment profit (in US dollar term) for this investment during that period.