Deputy premier: Sarawak govt monitoring its agencies’ investments in Serba Dinamik

·2-min read
Malay Mail
Malay Mail

KUCHING, May 26 — The Sarawak government is closely monitoring the investments of its agencies in Serba Dinamik Holdings Berhad, Deputy Premier Datuk Amar Douglas Uggah said today.

He said the state government does not want to make any decision based on isolated and short-term considerations without considering the portfolio in its entirety.

“The state’s investments are intended for long-term value appreciation and not for short-term trading,” he said in his winding-up speech.

He was responding to a query raised by Batu Lintang assemblyman See Chee How during the debate on the opening address of the state assembly.

Uggah, who is also the state’s second minister of finance and new economy, said when the state participated in Serba Dinamik’s Initial Public Offering (IPO) in 2017 and subsequent investments prior to the Covid-19 pandemic, the company’s financial position was strong with a revenue of RM2.72 billion and RM4.52 billion in 2017 and 2019 respectively.

He said its profit after tax (PAT) was RM304.79 million in 2017 and RM497.98 million in 2019.

“In fact, to date, the state received a total of RM22.552 million in dividend pay-outs from the company with a yearly dividend yield ranging from 4.6 per cent to 6.9 per cent.

“In addition, the state has also received share splits and bonuses, amounting to 66 million shares,” he said.

Uggah stressed that all investments carry some degree of risk, adding that 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 that things would derail so unexpectedly,” Uggah said.

He added the company is currently going through a series of interim setbacks.

“Nonetheless, the latest update indicates the company is looking into a turnaround and restructuring plan, which existing investors are looking forward to,” he said.

Uggah also said the state government has been paid RM813 million in sales tax on oil and gas for the first quarter of this year and RM2.458 billion was received last year from oil companies including Petronas.

“Since its imposition on January 1, 2019, the total revenue collected from this source amounted to RM8.52 billion to date,” he added.

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