EPF did not lose money in MAHB deal, says Finance Minister II

KUALA LUMPUR: The Employees Provident Fund (EPF) did not incur any losses in its sale and repurchase of Malaysia Airports Holding Bhd (MAHB) shares, says Datuk Seri Amir Hamzah Azizan.

“I want to take this opportunity to clarify to Kampar MP (Chong Zhemin) that there are no losses recorded by the EPF regarding the MAHB matter.

“With that, YB Kampar does not need to resign,” the Finance Minister II said during his winding-up speech in Parliament on Thursday (Feb 27).

On Feb 5, Chong said he would retire from politics if it is proven that EPF had incurred losses in the MAHB privatisation deal.

Chong was responding to Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam), who said EPF’s decision to sell at a low price before buying shares again within a year at a higher price caused losses to the rakyat, the main stakeholders of the investment fund.

According to Dr Wee, EPF’s shareholding was reduced from 15.5% to 5.79% and was brought back at 30% with a higher share price.

Meanwhile, Amir said the latest Auditor-General’s Report 1/2025 (AG report) did not take into account profits made from interest from EPF shares.

“When it (interest) is included, it is still operating positively,” said Amir.

“Because the profits are taken into account after interest costs, this caused the subsidiaries to incur losses for 2023,” added Amir.

According to the latest A-G’s report, the nine subsidiaries suffered losses of RM76.51mil in 2022, with losses in 2023 amounting to RM224.21mil.

The nine companies are KWASA Europe SARL, which recorded the highest loss of RM158.42mil in 2023, followed by Ameen Direct Equity I, LP (RM25.61mil), KWASA Europe-I SARL (RM14.40mil), Naungan Sentosa Sdn Bhd (RM11.88mi), Kwasa Utama Sdn Bhd (RM8.61mil), YTW Harta Sdn Bhd (RM2.70mil), Kwasa Singapore Duo Pte Ltd (RM1.36mil), PPNK – Harta Sdn Bhd (RM840,000) and Common Icon Sdn Bhd (RM390,000).

According to Amir, the overall market value of assets under KWASA Europe SARL is worth 2.45bil euros, which is 26% higher than its initial acquisition value of 2.18bil euros.

“The same goes with Kwasa Utama, with a real estate value of RM433.13mil, exceeding its investment cost of RM370.20mil,” he added.

For Naungan Sentosa Sdn Bhd, Amir said EPF took the necessary measures to raise footfall and occupancy rate at the Lalaport shopping complex.

At the same time, Amir said the Kwasa Singapore Duo Pte Ltd investment involved a hotel component inside Guoco Tower, Singapore.

“Besides that, there is also a residential and commercial component through the Kwasa Singapore Solo Pte Ltd and Kwasa Singapore Trio Pte Ltd,” said Amir.

For 2023, Amir said EPF recorded returns of RM16.28mil through interest and RM19.16mil in dividends.

“Its fair value of investment is higher, amounting to RM998.71mil compared to the investment cost which covers the cost of capital and shareholder loans amounting to RM801.26mil,” added Amir.