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Written by Joseph Chin of theedgemalaysia.com
Tuesday, 12 April 2011 10:51
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KUALA LUMPUR: Felda Global Ventures Holdings is undertaking a listing exercise of its sugar business, the first ever within the Felda Group.
This listing will enhance Felda’s leading position in the sugar industry, providing the Group with an opportunity to gain recognition in the capital markets and allowing it to realise its investment whilst retaining control of its asset.
The listing of Felda sugar on the Main Market of Bursa KL is expected to take place by July this year.
Khazanah
In line with the aspirations set out in the New Economic Model, the Government, Malaysia’s state owned investment fund, Khazanah Nasional Berhad and other GLICs, are gradually divesting their non-core holdings and non-competitive assets, including 26 parcels of Government land.
At least ten companies earmarked for divestment are expected to complete the process by the end of this year. In addition, four lots of Government land are being sold, with estimated proceeds in excess of RM1 billion.
Ekuinas
Ekuinas will be announcing its 2010 financial results by the end of April 2011. For the current financial year, it is planning to invest up to RM600 million, enabling a total economic capital deployment up to RM1 billion in 2011 into the Malaysian economy.
Pos Malaysia
As announced last year, the disposal of Pos Malaysia is now in its final stage. Evaluation has been completed and recommendations will shortly be made to the Khazanah board. I am happy to note that the process has been conducted in a transparent and market-friendly manner with a robust bidding process. I am also pleased that Malaysian Government Linked Companies continue to make good progress. In the last financial year, our 20 largest GLCs posted strong performance with aggregate earnings of RM17.3 billion, growth of almost 50% compared to 2009. These top performing 20 companies continue to show strong performance, registering annual Total Shareholder Returns of 16.4% over the period of the GLC Transformation Program from 2004 to 2010, significantly outpacing the Bursa Malaysia average.
FDI
Foreign direct investment rose by more than 400 per cent from USD1.7 billion to USD7 billion last year, whilst trade again broke through the one trillion ringgit mark.
Savings
Malaysia is fortunate in being well-positioned to finance its investment needs through its large pool of accumulated domestic savings. In fact, Malaysia’s high savings are expected to drive the rapid growth of the investment management industry, with assets under management projected to rise from RM377.4 billion in 2010 to a very substantial RM1.6 trillion in 2020.