THE Penang government has obtained a dividend return of RM8,682,075.52 this year (as of Nov 10) from its investments through shareholding.
Chief Minister Chow Kon Yeow said the state invested in seven companies listed in Bursa Malaysia.
They are Petronas Dagangan Bhd, Tenaga Nasional Bhd, Telekom Malaysia Bhd, Axiata Bhd, Malaysia Airport Holdings Bhd, PBA Holdings Bhd and Maxis Bhd.
“The stock price (cost) of these shares was RM233,964,073.19 while their market value in Bursa Malaysia as of Nov 10 was RM297,778,101.64.
“The state would profit RM63,814,028.45 if it sells the shares according to its market value,” he replied to an oral question by A. Kumaresan (PH – Batu Uban) at the Penang Legislative Assembly today.
Chow said the all the shares were purchased during the Initial Public Offering (IPO).
“In addition, the purchase of Maxis’ shares was made through the trust account of the Penang Investment Trust Fund.
“A committee known as the Penang Investment Trust Fund Board (LKAPP) has been set up for the purpose of administering the trust account of the Penang Investment Trust Fund.
“Any form of investment that utilizes the trust account of the Penang Investment Trust Fund has to be presented to the LKAPP. It also includes the decision to purchase or dispose shares,” he said.
The members in LKAPP are as follows – Chief Minister of Penang (chairman), Penang State Secretary (committee member), State Financial Officer (committee member), State Legal Adviser (committee member), and an officer from the State Finance Department (as secretary).
Chow added that there were two companies – Principal Asset Management Berhad and Kenanga Investors Berhad – appointed as investment advisers to the state.
“The two companies will present reports, such as Malaysia and global economy and the risk and potential of shares that can be invested, during their meetings with the state.
“The two companies are also given allocation to invest based on their assessment, on behalf of the state.
“As of September this year, we have received an investment return of RM2.69 million from their investments on behalf of the state,” he said.
State Opposition Leader Datuk Muhamad Yusoff Mohd Noor questioned if the state has any plan to increase investments in ‘less risky and profitable’ investments.
Chow said the state government had informed the fund manager, in the last meeting, to study the possibility of investing in sukuk.
“The returns are higher than fixed deposits, and they are less risky than normal stock market investments,” he said.
Story by Christopher Tan