PNB EXPECTS TO END YEAR ON HIGH NOTE
Fund manager sees better returns on assets
AMIR HISYAM RASID KUCHING bt@mediaprima.com.my
PERMODALAN Nasional Bhd (PNB) expects to end this year on a high note with higher returns on invested assets and stronger market capitalisation of its strategic companies in line with better economic growth.
Chairman Tan Sri Abdul Wahid Omar also does not deny and may give a clearer picture on the prospects of buying stakes in major foreign-owned insurance firms operating in Malaysia by December 22. PNB is set to announce its year-end results on December 22.
There were reports stating that major foreign-owned insurance firms were preparing to sell their stakes in their Malaysian operations to comply with Bank Negara Malaysia’s requirement of a 30 per cent local ownership.
When asked by NST Business if PNB would be interested in Prudential and Tokio Marine, he said: “At the right time, with the right opportunities... we are looking at all opportunities.”
Wahid expects the Malaysian economy to continue to grow better this year and next year, supported by brighter global economic outlook.
“With that, hopefully our investee companies would register higher growth in revenue and earnings to provide higher returns to PNB as long as they continue to optimise their costs.
“The higher returns would also be contributed by higher dividend payouts from overseas investments,” he added.
PNB’s strategic companies had registered RM186 billion in investment value, representing 10 per cent of public-listed companies’ market capitalisation on Bursa Malaysia.
With the listing of Sime Darby Bhd’s units — Sime Darby Property Bhd and Sime Darby Plantation Bhd — via its pure play strategy, PNB’s strategic companies’ total market capitalisation could be set for further boost.