CALL TO LIST MORE ISLAMIC FIRMS ON BURSA
PNB taking steps to designate stocks as i-shares
PERMODALAN Nasional Bhd (PNB) is pushing for the listing of more Islamic financial institutions on Bursa Malaysia. There’s still room to increase financial services stocks in terms of listed syariah-compliant entities on the local bourse, said PNB group chairman Tan Sri Abdul Wahid Omar.
Currently, 60 per cent of the stocks listed on Bursa Malaysia are syariah-compliant.
“We welcome more Islamic financial institutions to be listed and we will be supportive of that effort,” he said, adding that there were also ongoing efforts to designate stocks as Islamic shares, or i-shares.
He was speaking after the opening of PNB-USIM (Universiti Sains Islam Malaysia) Syariah Governance and Assurance Conference 2017 yesterday.
As to the time frame, Wahid pointed to the efforts by Maybank Investment Bank to boost Islamic capitalisation.
In a recent talk, he said since 25 per cent of Maybank group’s earnings came from syariahcompliant products and services, there were plans for a ring-fencing mechanism, where 20 per cent of the country’s largest lender’s shares would be categorised as i-shares.
“We have Maybank, CIMB and RHB, all of which have sizeable Islamic banking businesses and their strategy is to give syariahcompliant businesses first.”
On the funds invested, Wahid gave the assurance that PNB focused more on financial services stocks and avoided gambling, alcohol or tobacco stocks.
Earlier, he lauded the move by both Selangor and Penang state Islamic councils to approve for investments in Amanah Saham Nasional Bhd (ASNB).
The “Harus” fatwa, which makes investments in ASNB permissible, was issued in 2008 and 10 states adopted it first.
Penang and Selangor recently gave the positive fatwa after PNB had discussions with the respective religious councils.
“PNB itself has taken steps to intensify its efforts towards greater syariah compliance.”
Wahid described the recent decision by both the state religious councils as encouraging for the investment institution in its journey towards meeting syariah compliance, and more Malaysians should come forward.
“In our journey towards syariah compliance, we shared our status with all the state fatwa councils and fortunately, now both Penang and Selangor have given the positive fatwa.”
Selangor and the Federal Territory have the largest number of unitholders in the country.
PNB has created a paradigm shift and the Bumiputera community is more aware of risks and returns on investment through ASNB, its subsidiary.
It has over 13 million unitholders from all races and diversified business portfolios have grown to also include strategic investments in banking and insurance, plantation, automotive, property and also hospitality, with total assets under management exceeding RM266 billion.
PNB distributed a total dividend payout of almost RM14 billion last year, which brings the cumulative dividend distributed to RM157.5 billion.