Minister of Finance of Malaysia announced that the government would add RM5 billion capital into Valuecap Sdn. Bhd. which is the special vehicle under Ministry of Finance and encourage the indicated company doing efficient investment on the share market in this bear market.However,we were informed that the involved fund comes from Employees Provident Fund(EPF) where the employees all over the country put their savings.

To keep stability of share market during the frustrating market  is the thing that a government needs to do,especially in this kind of abnormal situation because it may be an effective way to set up some investor’s confidence in order to let the whole capital market go through this tough time.Yet,here is a big risk as the main factor of instability of the capital market is not only from internal(local),but also external(foreign).

Malaysia is not a large entity which can survive with less foreign direct investment(FDI).In current situation,most companies in the world are facing financial problems.Some may suffer reducing profit,more are getting loss or tending to be so because of cash flow issues.They are busy on transferring outside funds to maintain group’s assets and I don’t think they can arrange sufficient funds to continue its previous strategy plan.Cutting cost of company is a popular way,including to cut labours.Those labours are all normal people.They have a greater number than investors and they need a job to live more than other person(e.g. rich investors).Thus,the government should run more infrastructure projects now in order to provide chances to let more companies earn profit.This can attract FDI still staying/focusing on the area and thus substantially protect those common people’s interest.

Therefore,I admit that the share market ought to be adjusted and controlled by the government.But this should not be a real priority.In current Malaysian case,simply speaking,the government is using the money from all employees(common people) to rescue a small number of investors.It’s not fair.Instead,the government must put most amount to eliminate different obstacles which may cause unemployment,then benefitting larger group of people.That is my idea.

Of course,who is doing the right thing?Only the future can approve for it.