(This is my personal opinion based on publicly available information)
I’ve worked on major projects funded by pension funds, and in most cases these funds earned above-market, long-term returns. That’s why we shouldn’t react to politically charged claims without context.
Why Pension Funds Invest in Climate & Infrastructure Projects
Globally, pension funds invest in long-term assets - infrastructure, energy and climate-related projects. These allocations are small, controlled, and designed for stable returns.
Some foreign renewable energy companies have faced financial stress due to overleverage or heavy reliance on subsidies. So concerns about exposure are valid, but must be assessed through proper due-diligence safeguards.
How FDI Energy Projects Actually Work in Malaysia
Malaysia requires extensive checks before approval:
Full due diligence & risk assessments, investment committee approvals, protections like minimum guaranteed returns, performance bonds, PPAs, and oversight by MOF Inc, BNM, SEDA, Energy Commission (ST), TNB, MITI. (International green projects often have World Bank/ADB/AIIB partial guarantees) These are step-in rights apply if a company fails to perform.
Pension funds use strict risk frameworks: minimum IRR, senior-secured positions and long-term PPAs, not blind investments based on third-party guarantees.
About Foreign Companies “Going Bankrupt”
Most foreign renewable firms here operate via Malaysian SPVs with separate assets and liabilities. Even if a parent restructures overseas, the Malaysian SPV remains protected under local law and project contracts.
Claims that “many foreign renewable companies have gone bankrupt” are largely unsubstantiated. True bankruptcy requires proof through regulatory filings, insolvency notices, stock-exchange announcements, liquidation records and verified media reporting.
Without such evidence, the claims may be defamatory. And if a company genuinely collapsed, Malaysian regulators would intervene immediately.
Pension Funds Don’t Invest Blindly
Before investing, they conduct credit-rating analysis, legal and financial due diligence, project modelling, viability studies and risk assessments. A bankrupt entity would never pass these filters.
Recognizing the Fear Narrative
Many recent claims appear structured to create fear among civil servants and contributors, implying their savings are misused or at risk. This misinformation mixes partial facts with speculation, leveraging:
- Emotional triggers (“fear of losing savings”),
- Confusion between restructuring and bankruptcy,
- Global headlines misapplied to Malaysia,
- Political framing to undermine trust in institutions
This is why context matters. Pension fund investments follow strict processes, regulatory oversight and strong contractual protections far from the reckless risk-taking portrayed in viral narratives.
No comments:
Post a Comment