KUALA LUMPUR: The Employees' Provident Fund (EPF) plans to invest domestically in infrastructure projects as part of its RM50 billion investment under an initiative involving government-linked investment companies (GLICs).
The projects included renewable energy, data centres, ports, airports and toll roads, chief executive officer Ahmad Zulqarnain Onn said.
Ahmad Zulqarnain Onn said a portion of the investments will also target businesses, with a particular focus on the healthcare sector, which he believes will experience strong growth over the next 10 to 20 years.
The potential ventures by the EPF are part of a broader commitment by six GLICs to invest RM120 billion in domestic direct investments (DDI) over the next five years, as outlined by the Ministry of Finance (MoF) on Aug 8.
The programme, named GEAR-uP, aims to stimulate growth in key sectors of the economy.
Ahmad Zulqarnain said out of the RM120 billion, RM50 billion will come from the EPF.
"The RM50 billion that is spread over five years and it is about RM10 billion a year for us. Given our RM1.2 trillion in assets under management (AUM), this is a relatively small and manageable amount for us," he said in an interview on TV3's programme 'Money Matters' over the weekend.
Ahmad Zulqarnain said the funds are primarily reallocated from fixed income and redirected into DDI, focusing on local projects and companies.
"In terms of sectors, a chunk of that is going to go into infrastructure projects. That could be renewable energy (RE) projects, data centre projects, ports, airports, toll roads and the likes. So it's typical infrastructure.
"A portion of the RM50 billion will also go into businesses. And one of the sectors that we do like, and we think has a strong tailwind surrounding growth over the next 10, 20 years, is healthcare.
"As the population ages, healthcare demand is also going to increase, commensurate and healthcare also dovetails with our mission in providing a good retirement for Malaysians. Investing into healthcare will be one of the primary sectors for EPF as part of that RM10 billion a year that we're looking at now," he added.
Ahmad Zulqarnain said Malaysians need to anticipate their future healthcare needs and recognise that the healthcare sector is facing significant and likely ongoing cost inflation.
He advised Malaysians to consider purchasing takaful or insurance as early as possible, noting that the penetration rate of takaful insurance remains relatively low.
"Currently, there are five takaful providers that provide policies on our website. It is something that is really important, and a lot of people think about insurance as a cost. The reality is, as you age, you will need medical care. It is not an 'if', but it is a 'when'. As you age, you will need medical care.
"The right approach is to prepay for medical care by purchasing a takaful or insurance policy, as it's more cost-effective than waiting and covering the expenses later," he added.