Section 4 — TRUSTEE ACT 1949

(a)

in any of the securities of the Federal Government or the

Government of the State of Sabah or the State of

Sarawak or of the Republic of Singapore;

(b)

in any securities the interest on which is or shall be guaranteed by Parliament or by the Federal Government;

(c)

in or upon titles to immovable property in Malaysia, such titles being freehold titles or grants in perpetuity or leases

(other than mining leases) for a term thereof sixty years at least is unexpired at the time of such investment:

Provided that—

(i)

the land to which any such title relates shall be situate within the limits of any City, Municipality,

Town Council or Town Board area; and

(ii)

there be erected on the land to which such title relates houses or other buildings the gross rental whereof, together with the land appurtenant

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thereto, is at the time of such investment not less than seven per centum of the purchase price of the land, in the case of the purchase price, or of the value of such land, as ascertained under paragraph 12(1)(a), in the case of a charge.

(d)

in fixed interest securities issued in Malaysia with the approval of the Treasury by any public authority established under federal or State law;

(e)

in loans to an approved company;

(f)

in loans the principal and interest on which is or shall be guaranteed by the Federal Government, and may also from time to time vary any such investment as aforesaid.

(2)

No trust funds shall be invested under paragraph (1)(e)

unless—

(a)

the paid up ordinary share capital of the approved company is not less than five million ringgit; and

(b)

the approved company has paid a dividend at the rate of not less than five per centum upon such ordinary share capital during each of the last three years prior to the time of investment, and where the approved company is a company which has acquired the assets and liabilities of another approved company, payment of a dividend by that other company during each of the last three years prior to the time of such acquisition shall be treated as payment by the approved company; and

(c)

the total amount of the borrowings of the approved company from all sources, whether trustee or not, accepted by the approved company on loan and deposit, and including interest due and thereon not repaid by the approved company, does not at any time exceed two thirds of the amount, excluding prospective interest, for

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the time being secured to the approved company from its borrowers.

(3)

Paragraph (1)(e) shall not be taken to override the provisions of paragraph 4(2)(c) of the *Employees Provident Fund Act 1951

[Act 272] (which confer express powers on the Trustees of the

Employees Provident Fund to invest in loans to an approved company).

Further powers of investment of trustee