PNB Remains Optimistic About Malaysia’s Economy and Bourse Next Year

Clear Economic Policies and Steady Inflows of Foreign Direct Investments

Permodalan Nasional Bhd (PNB) remains optimistic about the outlook for Malaysia’s economy and local bourse next year, underpinned, among others, by clear economic policies and steady inflows of foreign direct investments (FDI).

Well-Received Economic Policies

President and group chief executive Datuk Abdul Rahman Ahmad said policies such as the National Energy Transition Roadmap and the National Semiconductor Strategy have been well received, bolstering investor confidence.

Third Wave of Investment Upcycle

He also noted that the country is currently experiencing a third wave of investment upcycle, which was contributed greatly by FDI inflow.

Strong Domestic Direct Investments

“The combination of well-received economic policies, strong FDI inflows driven by electrical and electronics sector data centres, and robust domestic direct investments indicates real activity on the ground. This positive trend reflects the close relationship between the economy and the stock market. I believe that the momentum we have in 2024 will continue in 2025,” he said during an editors’ briefing at Menara 118 today.

PNB’s Investment Strategy

Currently, 77% of PNB’s assets are invested domestically, with 60% of that allocation in the public equity market, mainly in the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI), Abdul Rahman said.

Risk Factors

“One potential risk is that while the Malaysian economy performs well, this has not yet translated into better earnings or performance for corporate Malaysia,” he added when asked about concerns that can derail the projection next year.

M&A Activities

When asked about potential merger and acquisition (M&A) activities following the Sime Darby-UMW Holdings Bhd deal, Abdul Rahman emphasized that PNB’s priority is ensuring Sapura Energy Bhd completes its debt restructuring.

Sapura Energy Bhd

“Sapura Energy’s debt restructuring scheme has been extended to March 2025, and completing this process is vital for stabilizing its operations,” he said, adding that PNB is not currently pursuing M&A activities in the oil and gas sector.

Conclusion

In conclusion, PNB remains optimistic about Malaysia’s economy and local bourse next year, driven by clear economic policies and steady inflows of FDI. The company is focused on reviewing its portfolio performance, taking a bottom-up approach to identify companies with strong organic growth potential.

FAQs

* What are the key factors driving PNB’s optimism about Malaysia’s economy and bourse next year?
+ Clear economic policies and steady inflows of foreign direct investments (FDI)
* What are the well-received economic policies that have bolstered investor confidence?
+ National Energy Transition Roadmap and National Semiconductor Strategy
* How much of PNB’s assets are invested domestically?
+ 77%
* What is PNB’s priority regarding Sapura Energy Bhd?
+ Ensuring it completes its debt restructuring scheme by March 2025