Response to Written Question PT6
📖 Reading time: 2 minutes
📊 Word count: 268 words
YANG BERHORMAT PEHIN ORANG KAYA LAILA SETIA DATO SERI SETIA AWANG HAJI ABD. RAHMAN BIN HAJI IBRAHIM​
QUESTION:
Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim requests the MINISTER AT THE PRIME MINISTER'S OFFICE AND MINISTER OF FINANCE AND ECONOMY II to state the feasibility of some SPK contributions being invested into well-performing and low-risk local GLCs (e.g., BIBD, DST, BFI, Petrochemical). It is understood that many contributions are invested abroad to achieve reasonable returns, and local GLC investments could potentially help in increasing dividend returns from stock sales and serve as a catalyst to attract new FDIs to stimulate the domestic economy.
YANG BERHORMAT MINISTER AT THE PRIME MINISTER'S OFFICE AND MINISTER OF FINANCE AND ECONOMY II​
ANSWER:
Yang Berhormat Yang Di-Pertua,
As Your Honourable Member is aware, SPK funds are not directly invested in GLC Companies considering the SPK structure needs to provide stable and risk-free returns. Instead, starting from the Financial Year 2020/2021, members' cumulative savings have been invested in investments that provide fixed returns and are guaranteed by the Government. This is to ensure SPK members' savings are more secured and not exposed to business risks.
The stability of dividend rates can guarantee that members' savings continue to grow in the future because members' savings are no longer exposed to value depreciation due to market volatility, especially amid increasingly uncertain global market economies caused by geopolitical pressures or the unforeseen emergence of pandemics.
Ensuring stable returns for members will also have a positive and resilient financial impact, especially for contributors with low salaries. Consistent returns can help members in projecting their total savings to enable them to make more structured retirement financial planning.
Thank you, Yang Berhormat Yang Di-Pertua.
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