With Khazanah placing out a 5% stake in Malaysia Airports on Sept 10, ’09, the market has
been rife with speculation over which investee company the corporation would be selling its
stake in next. We believe that companies in which Khazanah has a high ownership level and
whose share price is not significantly below investment cost, and has a stable financial
footing, would be the likely candidates for a stake sale. Based on these criteria, we feel that
healthcare player Pharmaniaga, property developer UEM Land and Malaysia Airports are the
potential candidates. Among Khazanah’s associate companies such as Proton, TM, Axiata,
TNB and Astro, we see fewer compelling reasons for a stake sale.