What?
KUALA LUMPUR: The government will invest an additional RM5 billion into Valuecap Sdn Bhd to double the latter’s funds to RM10 billion, Deputy Prime Minister Datuk Seri Najib Razak said today.
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Established in 2002, Valuecap is a fund management company created to invest specifically in the Malaysia equities market. Jointly owned by Khazanah Nasional Bhd, Permodalan Nasional Bhd and Kumpulan Wang Persaraan Diperbadankan (or better known as KWAP), Valuecap’s key mandate is to undertake investments in equities listed on Bursa Malaysia on a portfolio basis. [Govt to pump extra RM5b into Valuecap. Surin Murugiah. The Edge Daily. October 20 2008]
Why?
KUALA LUMPUR, Oct 20 (Bernama) — The government will provide RM5 billion in additional funds to double the size of Valuecap Sdn Bhd to RM10 billion and to invest in undervalued stocks and protect investments in government-owned companies, Deputy Prime Minister Datuk Seri Najib Tun Razak said Monday. [Government Provides RM5 Billion In Additional Funds To Invest In Undervalued Stocks. Bernama. October 20 2008]
I am sure even honest Keynesians would raise their eyebrows upon reading this.
3 replies on “[1810] Of more government intervention”
[…] I am particularly disappointed with equity injection and introduction of more subsidies. In times when we have made strides in reforming the structure of the economy, here we are, undoing the hard fought success. The mention of equity injection reminds me: whatever happened to the RM5 billion given to ValueCap? […]
[…] unveiling a RM7 billion economic stimulus in the Parliament, the Finance Minister touched on the earlier injection of RM5 billion into ValueCap (translated): In stimulating the capital market, I [Finance Minister Najib Razak] announced an […]
How passionately I hate to see the government intervenes