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).
