Capital flows to Malaysia hurting EPF

Malaysia’s RM520 billion ($170 billion) Employees’ Provident Fund invests 85% of its assets domestically, where high interest rates and good equity performance has traditionally enabled it to meet annual return targets easily. That has changed now that the country has become a favourite destination of global capital, thanks to the 3.5% yield on 10-year government bonds. Southeast Asia’s return to popularity has come at the price of EPF’s ability to achieve the 6% total returns it …