Malaysia is not worried over the impending hike in US interest rates next month as it will not affect the economy, says Deputy Finance Minister Chua Tee Yong.
“Malaysia has a vibrant economy with an equally vibrant equity, capital or bond market.
“Hence, we are not worried about it, but of course we will continue to monitor the situation," he told a press conference after visiting Bangunan KWSP in Petaling Jaya today.
On the impact of the US Federal Reserve's rate hike on the ringgit, Chu said many other factors including oil prices will still affect the exchange rates.
Amid speculation the Fed could increase the rates in December, factors such as the economic situation in China and US payroll or employment growth are also monitored by the Fed to decide whether the rates will be increased in December, he added.
On another development, Chua said the Employees' Provident Fund (EPF) did not invest in 1Malaysia Development Bhd (1MDB) but in the bonds of Panglima Power Sdn Bhd, an IPP (independent power plant) before 1MDB acquired it.
“Before 1MBD acquired the plant, it was just a normal investment in bonds by EPF, and EPF has been investing in bonds, equities and properties,” he said, adding EPF has been consistently providing returns to its members and does not rely on government funding or assistance to maintain independence.
EPF declared a dividend of 6.75 percent amounting to RM36.66 billion for 2014, the highest since 1999's 6.84 percent.
Meanwhile, Chua said the Retirement Advisory Service (RAS), a long-term plan implemented by EPF to help members achieve a sustainable retirement level, will be available at 17 EPF main branches by end-2016, and will be opening on a progressive basis.
To date, seven EPF offices - in Kuala Lumpur, Petaling Jaya, Johor Baru, Seberang Jaya, Ipoh, Kota Kinabalu, and Kuantan - have begun the service.
Chua said with only 33 percent of EPF members having achieved the basic saving requirement, the government hopes more members could go for RAS' advice.
As of Nov 15 this year, 7,297 members have received the free advice from RAS, he added.
- Bernama
