KUALA LUMPUR: The Employees Provident Fund (EPF) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) are looking to increase their investments overseas.
EPF CEO Tunku Alizakri Alias said the pension fund wants to invest more abroad from the current allocation of 38%. However, it is constrained by Bank Negara Malaysia’s (BNM) regulations.
“We are flushed with cash and we are growing every month. On every month or so on a net basis we get RM1.5 billion to RM1.9 billion. Very soon we will be a RM1 trillion fund. So the real challenge is where do we put this cash?” he said during a panel session at Invest Malaysia 2019 today.
He said EPF has the cash and the appetite, and is on the lookout for great opportunities.
Meanwhile, KWAP CEO Syed Hamadah Syed Othman said it has room to invest overseas and is in negotiations with BNM to do so. At present, about 87% of its allocation is domestic and 13% overseas.
He said if it obtains the green light from BNM, KWAP would be interested to invest in properties, in segments such as student accommodations, office blocks and logistics. KWAP already has investments in these segments in countries like the UK, Australia and Europe.
“That provides quite stable rental income and yields to our liking. Apart from properties, it has to be private equity... private equity is consistent with our strategy as a long-term investor,“ he added.
