US envoy says Calpers' exit from SEA a mistake

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US ambassador to Malaysia Marie Huhtala has described the withdrawal of the largest US pension fund from four Southeast Asian nations as a "mistake", a report said Friday.

The California Public Employees' Retirement System (Calpers) said it would exit from Indonesia, Malaysia, the Philippines and Thailand, citing factors such as poor transparency, labor standards and human rights.

"It is a mistake (for the fund) to withdraw because Southeast Asia is one of the most dynamic regions at this moment," Huhtala was quoted as saying by The Business Times .

Huhtala said Calpers' decision was "probably not based on fundamentals, but on an unfair perception.

"I agree that Calpers probably made its decision based on perception, but unfortunately that is how investment decisions are being made around the world today," she added.

'Good record'

Huhtala said the embassy would take steps to help Malaysia correct the unfair perception but also urged businessmen to play their role.

"The decision shows that investors take many factors into account before risking their money. Some of them see transparency and high labour standards as among the factors that reduce that risk, and companies here need to be aware of that," she added.

Malaysia has suggested that Calpers' move showed a lack of insight into the region's potential.

Deputy Prime Minister Abdullah Badawi has also dismissed the political aspects of the decision, saying it had nothing to do with Malaysia's record on human rights and democracy because "our record is good." (AFP)



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