KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) shares were sold at between RM6.80 and RM7.70 each, generating RM102 million for the Employees Provident Fund’s (EPF) 2023 dividend distribution, said Finance Minister II Amir Hamzah Azizan.
He said MAHB shares outperformed Bursa Malaysia’s benchmark composite Index by 11.47% in 2023, a key factor in the share sale strategy.
“The claim that the EPF suffered losses from this sale is unfounded, as the EPF clearly denied in its press statement on Feb 12, 2025. Based on this statement, the EPF recorded a profit from the sale and purchase of MAHB shares, contributing to total investment income of RM63.48 billion for the financial year ended Dec 31, 2023,” he said during Ministerial Question Time in the Dewan Rakyat today.
Amir Hamzah was responding to Chong Zhemin (PH-Kampar), who asked about the total profit or loss from the EPF’s MAHB share transactions and how it was reflected in the EPF’s financial statements.
Amir Hamzah said the EPF declared a dividend of 5.5% for conventional savings and 5.4% for syariah savings in 2023.
“Since 2014, total income from active trading and dividends from MAHB shares has reached RM650 million,” he said.
He explained that MAHB share trading and the company’s recent privatisation were separate investments, differing in objectives and management responsibility.
Until the voluntary general offer (VGO) was announced on May 15, 2024, on Bursa Malaysia, fund managers continued trading MAHB shares under their mandate to generate returns for EPF members, Amir Hamzah said.
The EPF enforces strict governance through an information barrier protocol, known as the “Chinese wall”, a standard practice among government-linked investment companies and financial institutions, he added.
“Under this protocol, the Strategic Investment Department, which handled MAHB’s VGO, is strictly prohibited from sharing sensitive, non-public information with the Equity Department. This ensures information is kept separate, preventing conflicts of interest that could lead to insider trading, which is a criminal offence under the Capital Markets and Services Act 2007 (CMSA),” Amir Hamzah said.
He stressed that the whistleblower protocol was a key safeguard against insider trading, as outlined in Section 190 of the CMSA.
Insider trading is a criminal offence punishable by a mandatory prison term of up to 10 years and a fine of at least RM1.0 million, he said.
“If the EPF used inside information for share trading, it would compromise the integrity and fairness of Malaysia’s stock market, given the EPF accounts for 38% of the domestic listed equity market,” Amir Hamzah said.
He added that the EPF’s strict internal controls, upheld with full integrity, have reinforced its standing as a respected investment institution over its nearly 75-year history.
“As Malaysia’s largest investment institution, the EPF takes its role in financial market stability seriously. Any improper action could not only damage the EPF’s reputation and standing but also impact the country’s financial market performance,” Amir Hamzah said.
He also said the EPF’s move to buy MAHB shares at RM11 per unit was aimed at positioning the company for a future relisting at a higher valuation.
He added that the EPF’s involvement focused on strategic value creation, a new business strategy, and the execution of MAHB’s recovery and improvement plans.
“This can only be achieved through MAHB’s operational transformation,” he said in response to a supplementary question from Chong on why the EPF needed to sell MAHB’s shares before announcing its dividends and how the fund plans to ensure MAHB’s privatisation is successful and benefits EPF members.
Amir Hamzah emphasised that the voluntary takeover offer by the consortium – which included the EPF – to acquire all remaining MAHB shares at RM11 apiece represents a long-term investment for the fund. – Bernama
