EPF Signs The Malaysian Code For Institutional Investors
KUALA LUMPUR, 24 January 2017: The Employees Provident Fund (EPF) announces that it has now become a signatory to the Malaysian Code for Institutional Investors (the “Code”), as part of the agenda to further promote good corporate governance in Malaysia. Signing on behalf of the EPF is Chairman Tan Sri Samsudin Osman.
The EPF has been actively involved in the development of the Code, which was officially launched on 27 June 2014 by the Securities Commission of Malaysia to create transparency and accountability among institutional investors.
EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said, “Signing the Code reinforces EPF’s commitment as a responsible investor in ensuring a high level of accountability and transparency, and promoting best practices of corporate governance among our investee companies in Malaysia.
“As one of the largest institutional investors and major players in the local financial market with over 34 per cent of total asset of RM713 billion (as at Q3 2016) invested in the equity market, the adoption of the Code will exert significant influence over our investee companies due to the substantial stake that we hold.”
The industry-driven code, which consists of six principles, aims to promote effective stewardship by institutional investors such as disclosure of stewardship policy, monitoring and engagement with investee companies and managing conflict of interest. It encourages institutional investors to practice corporate disclosure and transparency, which in turn would lead to sustainable long-term value creation to shareholders.
Datuk Shahril said since the launch of the Code in 2014, the EPF had already taken measures to fully embrace and adopt all six principles under the Code.
Chairman of the Institutional Investors Council Dato’ Wan Kamaruzaman Wan Ahmad said, “The participation by the EPF in signing the Code is an anticipated event for the Institutional Investors Council as well as for the Malaysian equity market as a whole.
“We hope this will encourage more asset owners and asset managers in Malaysia to take a similar step to become signatories to the Code.”
The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.
Picture 1: (From left): EPF Deputy Chief Executive Officer (Investment) Dato’ Mohamad Nasir Ab Latif; Chairman of the Institutional Investors Council Dato’ Wan Kamaruzaman Wan Ahmad; Chairman of EPF Tan Sri Samsudin Osman; Chief Executive Officer of EPF Datuk Shahril Ridza Ridzuan.
Picture 2: Chairman of the Institutional Investors Council Dato’ Wan Kamaruzaman Wan Ahmad (left) and Chairman of EPF Tan Sri Samsudin Osman signing the Code for Institutional Investors.