Allow me to respond to letter titled 'EPF should look at fundamentals, not fundamentalists' (Dec 7) by Home Boy who advocates an amoral or even immoral policy of extremist free market.

There is no doubt that in principle and in general, free market is more efficient and preferable than a rigidly planned economy which only benefits bureaucrats and academicians, and breeds corruption, nepotism and cronyism. The failure of the 70-year Soviet centralised economic planning testifies to that.

However, in preferring free market as the fundamental policy of an economy does not mean that there are no restrictions or regulations at all on the production and circulation of certain goods and services. For example, nuclear, chemical and biological weapons should never be allowed to be produced, bought, sold or consumed in the free market. Otherwise terrorists like Osama bin Laden would be able to destroy the world.

Similarly, since the 19th century, all free trade of slaves and opium (by extension, any drugs) has been abolished and declared criminal. These restrictions on certain goods and services, or curbs on the free market have established the universally accepted principle that there is no absolute, extremist or anarchist free trade or market.

The reason is simple: economic production and distribution should never be made an end in human society itself. Rather, it is a means to achieve certain moral ends, like healthy individuals, happy families, harmonious social relations, clean environment and etc. Human beings must learn to control and master over the means they achieve the ends, and not be mastered and enslaved by it.

So must EPF and the government on the issue of investment in tobacco, gaming and alcohol industries. While I do not advocate a total ban on the production and consumption of these items, I do believe that EPF and the government should not succumb to the free-market extremists who are amoral or immoral.

What is the use of paying handsome dividends to Malaysians whose health, physical and psychological, has been eroded or destroyed by smoking, alcoholism and gambling? More dividends for smokers, alcoholics and gamblers means that they would have more money to indulge more heavily in these activities. A vicious circle would ensue. Ultimately, the nation would be weakened and destroyed because of its sick and vice-addicted citizens.

For the sake of argument, let us assume that EPF continues to invest in gaming, alcohol and tobacco companies in the name of 'market fundamentals', why then is it wrong for some wealthy men and women (don't ask where their money come from!) to invest in prostitution, pornography, slavery, destruction of forests and green lungs, and drugs of all kinds, also in the names of 'fundamentals', 'free market' and 'free trade'?

EPF should instead invest the rakyat 's money into education, translation of books of knowledge, manpower training and re-training programmes, information infrastructure, modernisation of agricultural development and etc.