Muristek
Sarawak is thorough before investing in public listed companies, says state minister
KUCHING, May 26 — Any investments by the Sarawak government in a listed stock are based on a thorough analysis and assessments of the companies involved, said Sarawak Second Minister for Finance and New Economy, Datuk Amar Douglas Uggah Embas.
Winding up for his ministry for the debate on the motion of thanks to the Yang di-Pertua Negeri’s opening address at the State Legislative Assembly today, he said the assessments involved the respective company’s fundamentals, financial and potential prospects and growth.
“The state’s investments are intended for long term value appreciation and not for short-term trading,” he said in response to the issues related to the Sarawak government’s investment in a public-listed company, Serba Dinamik Holdings Bhd, raised by See Chee How (PSB-Batu Lintang) during the debate.
Serba Dinamik is currently going through a series of interim setbacks but Uggah, who is also Sarawak Deputy Premier, said the company was looking into a turnaround and restructuring plan which existing investors are looking forward to.
“No guarantee can be given about future performance and any decision to invest shall not be construed as offering such a guarantee.
“In the case of Serba Dinamik, no one could have anticipated for things to derail unexpectedly,” he said.
He also told the assembly that when Sarawak participated in Serba Dinamik’s initial public offering in 2017 and subsequent investment prior to the Covid-19 pandemic, the company’s financial position was strong with revenue of RM2.72 billion in 2017 and RM4.52 billion in 2019.
Serba Dinamik also earned a profit after tax of RM304.79 million in 2017 and RM497.98 million in 2019, he added.
“To date, the state had received a total of RM22.552 million dividend payout from the company with a yearly dividend yield ranging from 4.6 per cent to 6.9 per cent.
“In addition, the state also received share split and bonus issues amounting to 66 million shares,” he said. — Bernama