【正文】 Answers EMPLOYEES PROVIDENT FUND 54 。 Answers EMPLOYEES PROVIDENT FUND 52 Technology Innovation Business Process Reengineering (BPR), Core System Replacement (CSR), EServices amp。 GROWTHIPLANNED OUTCOMESDRIVERSCS 3 : E n h a n c e P o l i c y in p u t o n M a la y s ia ?s R e t i r e m e n t S c h e m e F 1 : O pt im iz e R e t u r nP4 : E m p l o y e r Co m p l i a n c e P1 : : Co n t i n u o u s I m p r o v e m e n t s a n d i n n o v a t i o n s EMPLOYEES PROVIDENT FUND 48 PRESENTATION ROADMAP Background Governance Investment Risk Management Challenges Way Forward Questions amp。 Equivalent % Equity External Managers (Domestic) % Outsourced % In House % EMPLOYEES PROVIDENT FUND 37 EPF BOARD MINISTRY OF FINANCE INVESTMENT OPERATION INVESTMENT Governance EPF ACT 1991 SECTION 18 provides for the establishment of the Investment Panel and specifies its members SECTION 26 confers powers to invest INVESTMENT PANEL MANAGEMENT INVESTMENT COMMITTEE EMPLOYEES PROVIDENT FUND 38 YEAR NOMINAL DIVIDEND RATE INFLATION RATE REAL DIVIDEND RATE 2020 2020 2020 2020 2020 2020 2020 1999 1998 INVESTMENT Dividend Rates EMPLOYEES PROVIDENT FUND 39 PRESENTATION ROADMAP Background Governance Investment Risk Management Challenges Way Forward Questions amp。 Equivalent % Equity External Managers (Domestic) % 1985: USD billion Over the years, EPF has expanded its investments from traditional assets being Government Bonds to risky assets.. EMPLOYEES PROVIDENT FUND 36 INVESTMENT Managed InHouse amp。 Bonds 9% Equity 3% MGS amp。 d) provide loans to any pany incorporated under the Companies Act 1965。 b) Joint venture。 INVESTMENT The Power of Board to Invest EMPLOYEES PROVIDENT FUND 32 INVESTMENT The Power of Board to Invest (b) To be invested in: ? Shares of any public pany listed on the stock exchange established in Malaysia。 ? Bank licensed under the Banking and Financial Institutions Act 1989 (Act 372)。 SUPERVISION INVT DEPT. OPERATION INVT DEPT. RISK MANAGEMENT DEPT. HUMAN RESOURCE DEPT. EPF TRAINING INSTITUTE INTERNAL AUDIT DEPT. EQUITY INVT DEPT. Board Audit Committee Board Risk Committee EMPLOYEES PROVIDENT FUND 26 The EPF is the single largest institutional investor in Malaysia. EPF has ensured that the panies in which it has invested practice good Corporate Governance (CG): ? Establishing the Minority Shareholder Watchdog Group ? Settingup within EPF a dedicated unit to engage and monitor publiclisted panies on CG issues : ? to attend and exercise proxy voting in panies? AGM and EGM. ? to collaborate with other institutional shareholders on CG issues detrimental to institutional shareholders. CORPORATE GOVERNANCE EMPLOYEES PROVIDENT FUND 27 Whilst advocating CG in panies the EPF invests, it is also crucial for the EPF itself to practice good CG. Good CG practices will ensure integrity, optimal performance and instill confidence of our stakeholders in EPF. In EPF, we have adopted CG practices as one of the key performance measures in our Balanced Scorecard. We have designed a CG Index to measure and monitor the implementation of good CG practices. CORPORATE GOVERNANCE EMPLOYEES PROVIDENT FUND 28 CORPORATE GOVERNANCE Corporate Governance Measure CG Index The key ponents of the CG Index: ? Transparency ? Independence ? Accountability ? Focus ? Risk Management ? Regulatory Compliance ? Fairness ? Social Awareness ? Responsibility ? Environmental Responsibility EMPLOYEES PROVIDENT FUND 29 1. Dissemination of Annual Statement of Accounts to Members 2. Tabling of Annual Report in Parliament 3. Advertising Annual Report in the News Papers 4. Advertising Quarterly Performance Reports in the News Papers 5. Dialogue Sessions with Companies that the EPF holds Substantial Stocks CORPORATE COVERNANCE STAKEHOLDERS COMMUNICATIONS EMPLOYEES PROVIDENT FUND 30 PRESENTATION ROADMAP Background Governance Investment Risk Management Challenges Way Forwar