Malaysia legislation
Section 26
Section 26
Power of the Board to invest
(a)
to be deposited in—
(i)
Bank Negara Malaysia; or
(ii)
a bank or an investment bank duly licensed under the Financial Services Act 2013
[Act 758]; or
(iii)
an Islamic bank duly licensed under Islamic
Financial Services Act 2013 [Act 759]; or
(iv)
a development financial institution regulated under the
Development
Financial
Institutions Act 2002 [Act 618];
(b)
to be invested in—
(i)
shares offered pursuant to an initial public offering which have been approved under the
Capital Markets and Services Act 2007
[Act 671] or shares listed on a stock exchange which have been approved under the same Act;
or
(ii)
debentures of any public company;
Employees Provident Fund 29
(c)
in bonds or purchasing of mortgage papers, commercial notes, banker’s acceptances, money market papers, certificates of deposits, private debt securities, promissory notes and bills of exchange within the meaning of the Bills of Exchange Act 1949 [Act 204] and other negotiable instrument of similar nature;
(d)
in accordance with the provisions of the Trustee Act 1949
[Act 208]:
Provided however, where the Board invests in or upon titles to immovable property in Malaysia in accordance with paragraph 4(1)(c) of the Trustee Act 1949, such immovable property may or may not yield any income at the time of such investment;
(e)
to provide loans to the Government of Malaysia or the
State Government; and
(f)
to provide loans to members of the Fund subject to such terms and conditions as may be determined by the Board for the purpose of purchasing or building a house.
(2)
The Board may with the written approval of the Minister, invest moneys belonging to the Fund in the following manner:
(a)
to be deposited in any bank or financial institution established by or under any written law;
(b)
to be invested in any joint venture;
(c)
by participating in any privatization programme;
(d)
to provide loans to any company incorporated under the
Companies Act 1965 [Act 125] or any corporation established by or under any written law;
(e)
by investing in any investment outside Malaysia;
NOTE─The Companies Act 1965 [Act 125] has been repealed by the Companies Act 2016
[Act 777] which comes into operation on 31 January 2017–see subsection 620(1) of Act 777.
30 Laws of Malaysia
(ea) by participating in or by carrying out dealings in any derivative instruments; or
(f)
investing in any other form of investment.
(3)
For the purpose of this section—
“debenture” includes debenture stock, bonds, notes and any other securities of a corporation whether constituting a charge on the assets of the corporation or not;
“derivative instruments” means a financial contract including forward contract, futures contract and option contract;
“share” means paid-up shares (whether fully paid or not) in the share capital of a company and includes stocks and rights to subscribe for any stocks and shares.
(4)
The Board may, where a foreign currency is required as an instrument of investment, in exercising the investment which has been approved under this section, make loan of the foreign currency for the purpose of the investment.
Power of the Board to invest in an approved company