CM: State Investment Strategy Now Effective

SHAH ALAM, 28 Nov: The investment strategy adopted by the State Government is now effective, less risky and does not reduce state reserve savings.

Chief Minister, Tan Sri Abdul Khalid Ibrahim said that the short term strategy that the State Government is using is to invest in bank deposits in country’s banking institutions.

“The strategy taken is to invest in bank deposits where we will get back our returns and not lose our capital,” he said.

He was responding to a question from Philip Tan Choon Swee (BN-Telok Datok) on the returns of investment in Selangor that has allegedly decreased according to the Auditor General’s Report 2011.

In the meantime, as of October 31, 2012, the State Government’s savings reserve has increased to RM2.570 billion.

Abdul Khalid explained that previously the State Government had made an investment in company shares on the stock exchange and government-owned companies however did not receive profitable returns.

He said that according the records from five to 10 years ago, the State Government did not have the expertise in investing in shares traded on the stock market.

“We are not encouraged to invest in the stock market for example … the capital of what was invested in Japan has been lost … if the investment capital before was worth RM3, now it is only RM1,” said the Ijok assemblyman.

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