Published by Asia Asset Management – 7th Aug 2018
Malaysia’s Employees Provident Fund (EPF), the country’s largest pension fund, has promoted Alizakri Alias to chief executive officer (CEO), succeeding Shahril Ridza Ridzuan who has helmed the fund for the last five years.
Finance Minister Lim Guan Eng has approved the appointment, which will take effect on August 20, EPF says in a statement over the weekend.
The vacancy arose after the government last week appointed Mr. Shahril as managing director of sovereign wealth fund Khazanah Nasional, effective August 20. Mr. Shahril has been CEO of the pension fund since 2013.
Mr. Alizakri is currently one of EPF’s three deputy CEOs. He is in charge of strategy, overseeing national policies on social protection, and development of products and services for the fund.
He is also a member of EPF’s management investment committee which is responsible for ensuring that all investment recommendations adhere to governance and risk controls.
His replacement as deputy CEO has not been named yet.
Prior to joining EPF in 2014, Mr. Alizakri had worked at Malayan Banking Group, the country’s biggest lender, plantation company Sime Darby, and mobile phone operator Digi Telecommunications.
EPF Chairman Samsudin Osman says the fund is “pleased with this internal appointment”.
“It is a validation of our robust succession planning which has enabled the Minister of Finance to choose a suitable internal candidate,” he says in the August 4 statement.
According to Yeah Kim Leng, a professor of economics at Malaysia’s Sunway University, EPF has “appointed the right person for the top job”.
“The appointment ensures continuity in the fund’s performance. Unlike an external candidate, Mr. Alizakri is familiar with EPF’s operations and can perform his role to the fullest immediately,” Dr. Yeah tells Asia Asset Management (AAM).
He says Mr. Alizakri’s immediate challenge is to ensure the sustainability of the fund and its investments, without taking on added risk in an environment where global macroeconomic risks are rising, such as those related to the trade war between the US and China.
A Kuala Lumpur-based fund manager tells AAM it will be challenging for Mr. Alizakri to repeat EPF’s strong 2017 performance because of the volatility in global markets.
“However, I believe his immediate focus is to ensure that EPF achieves its mandate – which is providing a return to its members of 2% above the rate of inflation,” the fund manager says, speaking on condition of anonymity.
EPF’s gross investment income rose 14% year-on-year to a record 53.14 billion ringgit (US$13.51 billion) in 2017, and the fund declared its highest dividend in 20 years – 6.9% for members of its conventional savings plan, and 6.4% for Islamic plan members.
EPF had 791 billion ringgit of assets under management at the end of 2017.
