KUALA LUMPUR, May 28 — The government’s candid declarations about the state of Malaysia’s finances were not the reason for the foreign disposal of local equity, argued EPF chief executive Datuk Shahril Ridza Ridzuan.

Speaking to the press after meeting the Council of Eminent Persons, Shahril pointed out that there has been a selldown in all regional markets and the same phenomenon in Malaysia should not be cause for concern.

"The markets are fine, I think it’s in line with global and regional markets, there’s been a bit of a selldown in all regional markets because of the strength of the US (dollar) as well as the global political issues,” he said.

He described remaining activity on Bursa Malaysia as "healthy” and stressed that market volatility was now a regular occurrence.

Shahril added that it was too soon to conclude that the exodus of hot money was in response to the government’s announcement.

According to Shahril, market cycles should be viewed on in blocks of three to five years as that was "the right way to do investments”.

Earlier, Shahril said he informed the Council on EPF’s state of affairs.

"We had a briefing on EPF, what EPF is doing for its members. They wanted to know what else we can do to help our members achieve a better future which is in line with our vision,” he said adding that the Council will make future announcements regarding any further updates from his side.

Foreigners have withdrawn nearly half a billion ringgit from the local stock market since the 14th general election or the equivalent of all external funds that entered the Malaysian bourse in the year to date.