EPF investments in US paying dividends, proves I wasn’t stupid, says Najib
(FMT) – In a flashback on his meeting with then president Donald Trump in 2017, former prime minister Najib Razak said his pledge to get the Employees Provident Fund (EPF) to invest in the US saw the opposition criticising him harshly.
However, he claims to have been vindicated now by the fairly high returns the fund had paid out as dividends in 2018 and 2019, with the rate for last year expected to equal the one declared by ASB at 4.45% or even higher.
“EPF has often reaped benefits by investing abroad and hence that is why it was able to ensure better returns for its members.
“When I was prime minister, I had pushed the EPF to invest in the US, which saw it making handsome returns.
“However, I was attacked by the opposition in 2017 when I pledged to invest in the US economy when I met Trump. I was even called stupid,” he said in Facebook post today.
The former prime minister said his meeting with Donald Trump in 2017 had saved the Malaysian economy over the last few years. (Bernama pic)
Najib said it was clear now that the investment strategy was two-pronged, with EPF getting good returns while ensuring Malaysia would not be slapped with tariffs by the US in its trade war with China and other countries.
He said in the end, the EPF had indeed managed better returns, despite the economic downturn in 2018 and 2019.
Najib said his good relations with the US had also helped prevent trade sanctions and tariffs similar to the ones imposed on China, adding that this was important as the US was the country’s third-largest trading partner.
“During my time as prime minister, we managed to convince the US to not block our exports by imposing tariffs. This will have a bearing on our economy.
“But sadly, the Pakatan Harapan and Perikatan Nasional governments did not nurture the good relationship we had with the US until we were classified as a trade cheat in May 2019. When I was PM, this did not take place,” he said.
Najib said as a result, glove makers, and government-linked companies like Felda Global Ventures and Sime Darby had faced certain trade restrictions by the US since last year.
“So, was Najib stupid for saving the country’s economy from trade sanctions from the US and ensuring that EPF members received higher dividends?”
In 2017, Trump signed an executive order which he promised would stop “foreign importers that cheat”.
The list included Malaysia as one of the countries allegedly responsible for the US’ trade deficit of nearly US$50 billion (RM221 billion).
Under the order, countries with large trade imbalances with the US were to be closely scrutinised for a 90-day period while the administration held talks with manufacturers, service providers, farmers and consumers to identify problems.
Besides Malaysia, other countries listed were Japan, Germany, Mexico, Ireland, Vietnam, Italy, South Korea, India, Thailand, France, Switzerland, Taiwan, Indonesia and Canada.
