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DELIVERING SUSTAINABLE RETURNS
A N N U A L R E P O R T 2 0 1 9
PNB remains focused on our
mandate of delivering sustainable
returns to our unit holders despite
the challenging economic climate.
Profitability and sustainability can
reinforce each other. Business
should do well, do right and do good
– and it pays beyond just numbers.
We approach investments with a
clear forward vision. We focus on
sustainable long-term returns, and
we believe that for businesses to
thrive, the societies in which we
operate must thrive too.
INSIDE THIS REPORT
OVERVIEW ASNB’S TRANSFORMATION JOURNEY ORGANISATIONAL CAPABILITY
4 Who We Are 70 ASNB’s Strategic Plan 2018-2022 76 Key Statistics: Human Capital
5 Corporate Information - Expansion of Digital Reach 77 Training & Development
6 Organisation Structure - Expansion of Agent Network 80 5-Year Technology Blueprint
8 Our Value Chain - Branch Transformation 81 Cultivating Innovation
10 2019 Milestones - Establishment of Outsourced Call Centre
12 Key Financial Highlights - Financial Literacy & Education
SOCIAL OBJECTIVES
LEADERSHIP
84 Corporate Social Responsibility Report
18 Board of Trustees of Yayasan 98 Uplifting the Bumiputera Community
Pelaburan Bumiputra
20 Board of Directors
28 PNB Leadership Team
CORPORATE GOVERNANCE
102 Statement on Corporate Governance
MESSAGE 112 Statement on Risk Management and
Internal Control
34 Message from the Group Chairman
121 Statement on Corporate Compliance
40 The President & Group Chief Executive’s
and Integrity
Review
125 Audit Committee Report
128 Shariah Advisory Committee Report
INVESTMENT PORTFOLIO
50 Global Footprint, Investment Philosophy and Process FINANCIAL STATEMENTS
52 Strategic Asset Allocation
54 Strategic Investment 131 PNB Group 5-Year Consolidated
60 Private Investment Coterminous Proforma Financials
62 Fixed Income 132 Independent Auditors’ Report
63 Real Estate 133 Unit Trust Funds
65 Merdeka 118
OVERVIEW PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD OVERVIEW
WHO WE ARE CORPORATE INFORMATION
VISION
BOARD OF DIRECTORS
To be a Distinctive World Class 1 Tan Sri Dr. Zeti Akhtar binti Aziz 4 Tan Sri Datuk Zainun binti Ali 7 Dato Dr. Nik Ramlah
Investment House Group Chairman binti Nik Mahmood
2 Encik Abdul Jalil 5 Datuk Dr. Mohd. Yaakub 8 Dato’ Johan bin Ariffin
bin Abdul Rasheed bin Haji Johari
(Appointed with effect from 1 October 2019)
MISSION Holder of Capital
Markets Services 3 Tan Sri Ahmad Badri 6 Datu Haji Soedirman 9 Dato’ Abdul Rahman bin Ahmad
Licence for Fund bin Mohd. Zahir bin Haji Aini (Resigned on 30 September 2019)
To enhance the economic wealth of Management
the Bumiputera community and
all Malaysians, for the prosperity of NOMINATION AND REMUNERATION COMPLIANCE COMMITTEE SHARIAH ADVISORY COMMITTEE
COMMITTEE
the nation Licensed Unit 1. Tan Sri Datuk Zainun binti Ali 1. Datuk Dr. Mohd. Daud bin Bakar
Trust Management 1. Tan Sri Dr. Zeti Akhtar binti Aziz (Chairman) (Chairman)
Company (Chairman) 2. Encik Abdul Jalil bin Abdul Rasheed 2. Tan Sri Dato’ Seri (Dr.) Haji Harussani
2. Datuk Dr. Mohd. Yaakub bin Haji Johari (Appointed with effect from 1 October 2019) bin Haji Zakaria
VA L U E S 3. Datu Haji Soedirman bin Haji Aini 3. Dato Dr. Nik Ramlah binti Nik Mahmood 3. Dato’ Haji Mohamad Shukri
4. Tan Sri Ahmad Badri bin Mohd. Zahir 4. Dato’ Abdul Rahman bin Ahmad bin Mohamad
(Appointed with effect from 17 January 2019, (Resigned on 30 September 2019)
4. Dato’ As-Sheikh Haji Nooh bin Gadot
Competence resigned with effect from 25 November 2019)
5. Prof. Emeritus Dato’ Dr. Mahmood
TENDER COMMITTEE
We possess the competency to Zuhdi bin Ab. Majid
FIXED PRICE UNIT VARIABLE PRICE UNIT INVESTMENT COMMITTEE 6. Dr. Aida binti Othman
deliver high performance 1. Datuk Seri Dr. Nik Norzrul Thani
TRUST FUNDS TRUST FUNDS 7. Dato’ Idris bin Kechot
1. Tan Sri Dr. Zeti Akhtar binti Aziz bin N. Hassan Thani
(Appointed with effect from 7 August 2019)
(Chairman) (Chairman)
Humility 2. Encik Abdul Jalil bin Abdul Rasheed 2. Encik Abdul Jalil bin Abdul Rasheed
(Appointed with effect from 1 October 2019) (Appointed with effect from 1 October 2019) REGISTERED OFFICE
We treat people with mutual respect, 3. Datuk Seri Dr. Nik Norzrul Thani 3. Dato Dr. Nik Ramlah binti Nik Mahmood
Permodalan Nasional Berhad
stay grounded to our roots, always bin N. Hassan Thani 4. Dato’ Abdul Rahman bin Ahmad
(Resigned on 30 September 2019)
Level 4, Balai PNB
4. Datuk Dr. Mohd. Daud bin Bakar
cognisant that we serve a greater 201-A, Jalan Tun Razak
5. Dato’ Johan bin Ariffin
purpose PROPERTY INVESTMENT COMMITTEE 50400 Kuala Lumpur
6. Dato’ Abdul Rahman bin Ahmad
(Resigned on 30 September 2019)
Tel: 03-2050 5100
1. Tan Sri Dr. Zeti Akhtar binti Azi Fax: 03-2050 5268
Integrity (Chairman)
AUDIT COMMITTEE
2. Encik Abdul Jalil bin Abdul Rasheed AUDITORS
We will not compromise on integrity 1. Datuk Mohd. Anwar bin Yahya (Appointed with effect from 1 October 2019)
and we are committed to the highest (Chairman) 3. Datuk Seri Dr. Nik Norzrul Thani Messrs Hanafiah Raslan & Mohamad PLT
2. Datuk Seri Dr. Nik Norzrul Thani bin N. Hassan Thani
level of ethical conduct 4. Datuk Dr. Mohd. Daud bin Bakar BANKERS
bin N. Hassan Thani
3. Dato Dr. Nik Ramlah binti Nik Mahmood 5. Dato’ Johan bin Ariffin
6. Dato’ Abdul Rahman bin Ahmad Maybank Islamic Berhad
Prudence (Resigned on 30 September 2019) Malayan Banking Berhad
RISK MANAGEMENT COMMITTEE
We are focused in safeguarding our
1. Dato Dr. Nik Ramlah binti Nik Mahmood APPEAL COMMITTEE
unit holders’ wealth (Chairman)
2. Datuk Seri Dr. Nik Norzrul Thani 1. Tan Sri Datuk Zainun binti Ali
(Chairman)
bin N. Hassan Thani
Passion 3. Datuk Mohd. Anwar bin Yahya 2. Tan Sri Ahmad Badri bin Mohd. Zahir
3. Datuk Dr. Mohd. Yaakub bin Haji Johari
We are passionate in our task to 4. Datu Haji Soedirman bin Haji Aini
achieve beyond the ordinary
4 ANNUAL REPORT 2019 5
OVERVIEW PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD OVERVIEW
ORGANISATION STRUCTURE ORGANISATION STRUCTURE
BOARD OF DIRECTORS
Group Chairman
TAN SRI DR. ZETI AZIZ
President &
Group Chief Executive
JALIL RASHEED Company Secretary & Legal Risk Management Compliance & Integrity
Company Secretary Internal Assurance Compliance
Shariah Management Public Affairs Treasury Strategy
Legal Integrity
PNB Research Institute Corporate Strategy
Sdn Berhad
Strategic Asset Allocation
Communications
Transformation
Education
Public Markets Strategic Investments Private Markets Real Estate Technology Group Finance Unit Trust
Sales & Channel
Banking & Insurance Direct Investments Real Estate Investment IT Security Finance
Management
Management
Investment
Fund Management Economics
Analysis Industrial & Motors Global Fund Investments IT Business Analyst Unit Trust Strategy &
Global Real Estate & Procurement
Product Management
ASB Funds Consumer Asia-Pacific Funds Investment
Discretionary Plantation, Healthcare
Transformation
& Telco Investment Processing Customer Service
Management Office
ASM Funds Developed Real Estate Special Projects
Communications Economies Energy, Utilities &
Infrastructure Technology Support Property Operations Branch Management &
ASN Funds
Healthcare Commodities Facilities Management Services Supervision
Property & Construction
Proprietary PNB Development Sdn Berhad Project Management
Fund Financials Foreign Exchange Development Assets – Business Application Preferred Client & Agent
& Rates PNB 1194 Systems Management
Corporate Governance PNB Commercial Sdn Berhad
Global Property Maintenance
Equity Strategy
Strategy & Foreign Equity Market Business Solutions
PNB Merdeka Ventures IT Architecture & Strategy
Exchange Operations
Credit Analysis Sdn Berhad General Services
Unit Holders
Outsourced Core Application Systems
Fixed Income Communications &
Funds Business Human Capital Listed REIT (Pelaburan Security Financial Education
Process & Data Hartanah Nasional Berhad)
Management IT Service Management
Human Capital Planning & Unit Trust Operations &
Attana Hotels &
Development Record Administration
Division Resorts Sdn Bhd
Accounts
Department
Operating Subsidiary Human Resource Marketing & Publicity
Operations & Administration
Units
6 ANNUAL REPORT 2019 7
OVERVIEW PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD OVERVIEW
OUR VALUE CHAIN OUR VALUE CHAIN
Unit holders invest in PNB manages the investments of the Investments are made across a diversified portfolio of asset
ASNB’s products unit trust funds classes and geographies to manage risk exposure
PNB RUNS A ROBUST END-TO-END PROCESS FOR
INVESTMENT SELECTION
Due Diligence,
Selection of
Objective Idea Analysis,
Investable
Setting Generation Forecast &
Assets
Valuation Global
Commodity Trade
Monitoring Prices GDP
Executive Review, Growth
Portfolio
& Active Rebalancing,
Fixed Price Unit Trust Funds Construction
Management Monetisation
& Exit
Real Market
Estate Sentiments
WITH AN EFFECTIVE GOVERNANCE OPERATING MODEL Private
Equity
Business Units Leadership Team Investment Committees Board
President & Group Unit Trust Fund Investment Trust Currency
Chief Executive INVESTMENT Public
Committee Deed Movements
PORTFOLIO Equity
Variable Price Unit Trust Funds
Asset Management Board
Strategic Business Units PNB Investment Committee of Directors
Fixed Interest
Fixed Price Variable Price
Proprietary Compliance Committee Investment Income Rates
Unit Trust Unit Trust
Fund Management
Funds Funds
Agreement Cash
Audit Committee
Group Assurance
Geo-Politics
Financial & Board Corporate Capital
Compliance Risk Management Committee
of Directors Earnings
Management Audit Flows
Department
Department
Other PNB Board Committees
Risk Management Department
REGULATED BY Performance of assets is
External Auditors Statutory Bodies driven by a combination of
macroeconomic and
market factors
Enabling the sharing of corporate Annual income distribution to unit holders is derived The returns of the portfolio are generated from realised
wealth to unit holders from the performance of the portfolio capital gains and recurring income from each asset class
8 ANNUAL REPORT 2019 9
OVERVIEW PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD OVERVIEW
2019 MILESTONES 2019 MILESTONES
JANUARY FEBRUARY MARCH APRIL JUNE JULY
Appointment of YBhg Datuk Mohd.
Anwar Yahya as ASNB new Board Official opening of Minggu Saham
of Director. PNB’s inaugural Leadership Forum which Amanah Malaysia (MSAM) 2019 in Perdana Kuala Lumpur City Centre
centred around key topics of “Organisational Sungai Petani, Kedah. The annual event and Perdana Kota Bharu received the
Appointment of YBhg Tan Sri Ahmad Badri which reached its 20th edition in 2019, Second PNB Leadership Forum with “Platinum” rating by the Islamic Tourism
Transformation” and “From Governance to
Mohd. Zahir, YBhg Tan Sri Datuk Zainun Ali, attracted some 163,000 visitors around the topic "Positive Autocracy – Centre, under the Ministry of Tourism,
Performance”.
YBhg Dato Dr. Nik Ramlah Nik Mahmood and Kedah, thereby reaching over 3.9 million A Leadership Model for Industry 4.0". Arts & Culture, for their Muslim-friendly
YBhg Dato’ Johan Arifin to the PNB Board visitors since MSAM was first incepted. Hospitality Services.
of Directors.
Completion of the
joint acquisition of
Battersea Power
Station Phase II by
PNB Group became the PNB and EPF at a
largest shareholder in Sapura The fifth ASNB Starz Awards was total consideration
Energy with a 40% stake held in appreciation and recognition of £1.58 billion
subsequent to the completion of ASNB agents’ contribution and (RM8.35 billion).
of Sapura Energy's capital call achievements. Launch of myASNB mobile application
in January 2019. to cater to the needs of the younger Fiesta Labur PNB in Johor Bahru, Johor
Commencement of outsourced programme generation and provide greater was held to encourage unit holders to
for Private Equity and Real Estate as part of convenience and ease for unit holders update personal information, register
the global asset diversification strategy. to perform their transactions. to be a user of myASNB portal and
download myASNB mobile application.
DECEMBER NOVEMBER OCTOBER SEPTEMBER
Appointment
of Encik Jalil
Rasheed as
President &
Group Chief
Executive.
Launch of PNB Kembara 2019 – the YAB Prime Minister Tun Dr Mahathir
Completion of Strategic Asset nationwide tour was organised to Mohamad’s official visit to Battersea
Retirement of YBhg Datin Paduka Kartini Allocation's Mid-Term Review.
The YTI Memorial Lecture 2019, which encourage unit holders to update their Power Station, London, UK.
Haji Abdul Manaf, Deputy President, was jointly organised by Yayasan Tun personal information.
Strategic Investment after over 36 years Completion of the disposal of Menara
Ismail Mohamed Ali (YTI) and PNB AIMS to Time dotcom Group as part of a
of service. Research Institute Sdn Berhad (PNBRI), capital recycling opportunity and strategic
focused on cultivating and enhancing decision to rebalance PNB's overall real
resilience in a crisis situation, and the estate portfolio.
importance of foresight skills in modern
leadership.
PNB’s inaugural thought leadership forum Retirement of YBhg Dato’ Abdul Rahman
“PNB Corporate Summit 2019” with the Official launch of Merdeka 118 Show Ahmad as President & Group Chief
theme “Rebooting Corporate Malaysia” Gallery at Jalan Sultan Ismail, Kuala Executive upon completion of his
was officially opened by the then YAB Lumpur by YBhg Tan Sri Dr. Zeti Aziz. three-year tenure.
Prime Minister, Tun Dr. Mahathir Mohamad.
10 ANNUAL REPORT 2019 11
OVERVIEW PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD OVERVIEW
KEY FINANCIAL HIGHLIGHTS KEY FINANCIAL HIGHLIGHTS
Assets Under Management Units in Circulation Number of Accounts PNB Group 5-Year Consolidated
Coterminous Proforma Gross Income
(RM billion) (billion units) (million) (RM billion)
18.8 17.5 20.4 20.3 15.1
312.0 253.8 14.3
2019 2019 2019
13.8
298.5 2018
2018 236.6 13.2 2015 2016 2017 2018 2019
2018 12.9 2017
279.2 12.6 2016
2017 219.3 2015
266.4
2016 211.6 2017 PNB Group 5-Year Consolidated
254.6 2016 Coterminous Proforma Net Income
2015 202.5
2015 (RM billion)
15.6 15.2 17.7 17.0 10.7
2015 2016 2017 2018 2019
PNB Group 5-Year Consolidated
Coterminous Proforma Return on Assets
6.3% 6.0% 6.7% 6.0% 3.5%
2015 2016 2017 2018 2019
12 ANNUAL REPORT 2019 13
OVERVIEW PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD OVERVIEW
KEY FINANCIAL HIGHLIGHTS KEY FINANCIAL HIGHLIGHTS
PNB Group Asset Allocation by Asset Class Performance of the Unit Trust Funds
2019 2018
13.4% 17.4% Financial Year End (FYE) 31 Dec 31 Mar 30 Jun 31 Mar 31 Aug 30 Sep
Cash & Money Market 0.5% 0.3%
Cash & Money Market
Others Others Distribution (sen per unit) 5.0 + 0.5 6.0 4.85 + 0.4 5.5 5.0 5.0
6.4% n 6.5%
Fixed Income Fixed Income
Net income (RM million) 5,821.5 610.8 233.8 1,076.7 867.0 731.4
Units in circulation FYE (billion units) 167.2 10.4 6.2 19.5 21.7 13.7
3.4% 2.8%
68.0% 69.1%
Real Estate Real Estate
Domestic Domestic Mixed Asset Mixed Asset
2.4% Public Equity 2.2% Public Equity
Equity Balanced Conservative
Private Private
Investments Investments
5.9% 1.7%
International International
Public Equity Public Equity
Financial Year End (FYE) 31 Dec 30 Jun 31 Mar 30 Sep 30 Nov 31 Mar 31 Mar 30 Sep
Distribution yield (%) 4.35 5.04 4.44 4.06 4.54 4.59 4.57 4.26
Total return (%) 1.74 1.20 -6.27 -3.89 3.62 -2.25 0.13 2.79
Net income* (RM million) 49.4 43.2 124.2 15.9 58.7 40.5 82.1 49.3
PNB Group Asset Allocation by Geography
Units in circulation FYE
1.8 1.5 2.6 0.4 1.3 1.3 1.6 1.1
(billion units)
2019 2018
* Realised portion of total comprehensive income, including Distribution Equalisation Reserve (DER).
8.5% 3.3%
International International
Income Distribution (RM billion)
70% 50% Cumulative Income Distribution Annual Income Distribution Payout
• Public Equity • Public Equity
14% 12%
• Real Estate • Real Estate
4% 1%
200.2 15.0
2019 14.6 2018
• Private • Private 187.1 14.2 13.9 2017
Investments 91.5% Investments 96.7% 2018 2015 2016 13.2
2019
12% Domestic 37% Domestic
• Cash • Cash
81.3
2010
32.9
2000
6.7
1990
14 ANNUAL REPORT 2019 15
LEADERSHIP 18 Board of Trustees of Yayasan Pelaburan Bumiputra 20 Board of Directors 28 PNB Leadership Team
LEADERSHIP PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD LEADERSHIP
BOARD OF TRUSTEES OF BOARD OF TRUSTEES OF
YAYASAN PELABURAN BUMIPUTRA
YAYASAN PELABURAN BUMIPUTRA
YAB TAN SRI YB SENATOR
DATO' HJ. TENGKU DATO'
MUHYIDDIN SRI ZAFRUL
HJ. MOHD. TENGKU
YASIN ABDUL AZIZ
CHAIRMAN OF YPB/PRIME DEPUTY CHAIRMAN OF
MINISTER OF MALAYSIA YPB/MINISTER OF FINANCE
YBHG TAN SRI YBHG TAN SRI
DR. ZETI AZIZ HAJI AMBRIN
GROUP CHAIRMAN OF PNB BUANG
18 ANNUAL REPORT 2019 19LEADERSHIP PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD LEADERSHIP
BOARD OF DIRECTORS BOARD OF DIRECTORS
Qualification - PhD in Economics from University of Pennsylvania, Qualification - Bachelor of Science (Honours) in Accounting and
USA Finance from the London School of Economics
- Bachelor of Science in Economics from University and Political Science, UK
of Malaya
Directorship - Chairman of Sapura Energy Berhad and Projek
Directorship - Chairman of Amanah Saham Nasional Berhad and Lintasan Kota Holdings Sdn Bhd (PROLINTAS)
Sime Darby Property Berhad - Amanah Saham Nasional Berhad (ASNB) and
Pelaburan Hartanah Nasional Berhad (PHNB)
Other Information - Co-chair, Board of Governors of Asia School of
Business, established in collaboration with Working Experience Abdul Jalil was appointed as the President &
MIT Sloan Group Chief Executive and Director of PNB on
1 October 2019. He joined Invesco in 2013 as
Tan Sri Dr. Zeti was appointed as the Group Chairman Chief Executive Officer (CEO), South East Asia &
Working Experience
of PNB on 1 July 2018. Prior to the appointment, Head of Emerging Markets Group. He led the firm’s
Tan Sri Dr. Zeti had served as Governor of Bank business activities across the region and investment
Negara Malaysia from May 2000 to April 2016. She strategy in all asset classes across emerging
had an important role in managing the resolution of markets. He was also a member of Invesco’s Global
the financial system in 1998 during the Asian financial Investment Committee, responsible for investment
crisis and the consequent strong recovery of the strategy, product development, corporate governance
Malaysian economy. She was also instrumental in and talent development.
transforming Malaysia’s financial system, including
overseeing the enactment of 12 new pieces of Prior to joining Invesco, he spent 10 years with
legislation for the financial sector. During this period, Aberdeen Asset Management in various investment
the Malaysian financial system also underwent a leadership roles. His last position was CEO of
period of progressive liberalisation. Aberdeen Islamic Asset Management, based in Kuala
Lumpur, where he established and managed the firm’s
In Asia, Tan Sri Dr. Zeti was active in strengthening investment desk and developed the overall Malaysian
cooperation and regional financial integration. In 2006, and global Shariah business.
she chaired the regional task force that prepared
the report for the future direction of central bank
financial cooperation in the East Asian region. At the
Bank for International Settlements (BIS), she was the
chair of the BIS Central Bank Governance Group. In
the region, she was a founding member of the Bank
for International Settlements (BIS) Asian Consultative
Council, and was the first Co-chair of the Financial
Stability Board Regional Consultative Council Group
TAN SRI DR. ZETI for Asia. Tan Sri Dr. Zeti also had an extensive role in
the global development of Islamic finance, and was
ABDUL JALIL
AKHTAR AZIZ active in the global financial inclusion agenda. She has
been an important voice for the emerging world on
ABDUL RASHEED
the many issues concerning the international financial
Group Chairman President & Group Chief Executive
system and on financial and economic management.
Position: Non-Independent Non-Executive Director Position: Non-Independent Executive Director
Age: 73 Age: 37
Date of Appointment: 1 July 2018 Date of Appointment: 1 October 2019
20 ANNUAL REPORT 2019 21LEADERSHIP PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD LEADERSHIP
BOARD OF DIRECTORS BOARD OF DIRECTORS
Qualification - Master of Business Administration from University Qualification - Master of Laws degree (LLM) (Cantab) from
of Hull, United Kingdom. University of Cambridge, United Kingdom
- Bachelor’s Degree (Honours) and Diploma in - Bachelor of Laws (LLB) (Hons) from
Land and Property Management from University University of Malaya
Technology MARA (UiTM)
Directorship - Chairman of Malaysia Airports Holdings Berhad
Directorship - Chairman of Lembaga Hasil Dalam Negeri
Malaysia (LHDNM), Lembaga Pembiayaan
Other Information - Member of the United Nations’ Advisory Board of
Perumahan Sektor Awam (LPPSA), Kumpulan
the Global Judiciary Integrity Network
Wang Persaraan (KWAP), Cyberview Sdn Bhd and
Tenaga Nasional Berhad (TNB)
- Bank Negara Malaysia, Lembaga Tabung Haji Working Experience Tan Sri Datuk Zainun was appointed as a member of
(LTH) and Perbadanan Insurans Deposit Malaysia the Board of Directors of PNB on 1 January 2019, after
(PIDM)
having served the Government in various capacities
in the Legal and Judicial Services since 1976. After
Other Information - Member of Investment Panel for Kumpulan Wang her stint as Legal Adviser to Ministries which included
Simpanan Pekerja (KWSP) her service as the Registrar of Companies and Chief
Registrar of the Federal Court, she was elevated to
the Bench in 1996 as a High Court Judge. She was
Working Experience Tan Sri Ahmad Badri was appointed as a member of
subsequently promoted to the Court of Appeal Bench
the Board of Directors of PNB on 1 January 2019. He
and later reached the apex court in 2012, as a Federal
is currently the Secretary General of Treasury, Ministry
Court Judge.
of Finance. Prior to this, he was the Deputy Secretary-
General (Management) of Treasury.
He has served for almost thirty one (31) years in the
Ministry of Finance, holding several senior positions,
including the Director of the National Budget Office
and Under Secretary of Strategic Investment Division.
He had been appointed as an Adviser for Asian
Development Bank (ADB) in Manila, the Philippines.
TAN SRI AHMAD TAN SRI DATUK
BADRI MOHD. ZAHIR ZAINUN ALI
Position: Independent Non-Executive Director Position: Independent Non-Executive Director
Age: 60 Age: 67
Date of Appointment: 1 January 2019 Date of Appointment: 1 January 2019
22 ANNUAL REPORT 2019 23LEADERSHIP PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD LEADERSHIP
BOARD OF DIRECTORS BOARD OF DIRECTORS
Qualification - PhD in Sociology from University of Salford, United Qualification - Fellow of the Association of Chartered Certified
Kingdom Accountants (UK)
- Master of Science (Liberal Studies) from University - Chartered Accountant (Malaysia) of Malaysian
of Manchester, United Kingdom Institute of Accountants (MIA)
- Bachelor of Science (Honours) from University of
Sussex, United Kingdom
Directorship - Sarawak Plantation Bhd, Sarawak Consolidated
Industries Berhad, Amanah Saham Sarawak
Working Experience Datuk Dr. Mohd. Yaakub began his career as a Berhad, Sara Worldwide Vacations Berhad and
part-time lecturer in Political Science at the MARA Damai Golf & Country Club Berhad
Institute of Technology and in 1983, he joined the
Sabah State Civil Service as an Assistant Director Datu Haji Soedirman started his career with Petroliam
Working Experience
(Research and Consultancy) in the Chief Minister’s Nasional Berhad in 1982, and after serving 13 years
Department. He was made the Principal Assistant with the company, resigned in 1995, to join Sarawak
Director (Management Development) in 1984. He State Government.
joined the Institute of Development Studies, Sabah
(IDS), the State’s official think tank as an Associate His recent position was as the General Manager
Director (Social Affairs) in 1985 and later moved up of Sarawak Economic Development Corporation
to Deputy Chief Executive/Senior Research Fellow in (SEDC) prior to his retirement on 31 December 2018.
1991-1994. He served as the Executive Director/Chief His previous employment in the Sarawak Civil
Executive of the IDS for 15 years from 1994-2009 prior Service includes being the Permanent Secretary of
to his appointment in 2009, as the Chief Executive of the Ministry of Social Development, Director of State
the Sabah Economic Development and Investment Implementation Monitoring Unit, Permanent Secretary
Authority (SEDIA). of the Ministry of Industrial Development, Deputy State
Financial Secretary and State Accountant-General.
Between November 2002 and September 2003, he
was seconded to Amanah Saham Sarawak Berhad
as its Chief Executive Officer. He currently sits on
the Board of public listed companies and various
Government-Linked Companies and Non-Government
Organisations.
DATUK DR. MOHD. DATU HAJI SOEDIRMAN
YAAKUB HAJI JOHARI HAJI AINI
Position: Independent Non-Executive Director Position: Independent Non-Executive Director
Age: 64 Age: 64
Date of Appointment: 1 January 2017 Date of Appointment: 1 January 2017
24 ANNUAL REPORT 2019 25LEADERSHIP PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD LEADERSHIP
BOARD OF DIRECTORS BOARD OF DIRECTORS
Qualification - PhD in Law from University of London, Qualification - MBA (Marketing) from University of Miami,
United Kingdom Coral Gables, Florida, USA
- Master of Laws from University of London, - Bachelor of Arts Degree in Economics from
United Kingdom Indiana University, Bloomington Indiana, USA
- Bachelor of Laws from University of Malaya
Directorship - Chairman of Pelaburan Hartanah Nasional Berhad
Directorship - United Malacca Berhad, Axiata Group Berhad, (PHNB), Mitraland Group of Companies, Etiqa
Securities Industry Development Corporation Insurance Pte Ltd (Singapore) and Etiqa Life
(SIDC), Institute for Capital Market Research Insurance (Cambodia) Plc
Malaysia (ICMR) and International Centre for - Sime Darby Property Berhad, Etiqa Life Insurance
Education in Islamic Finance (INCEIF) Berhad, Etiqa Family Takaful Berhad, Etiqa
General Takaful Berhad and Maybank Ageas
Holdings Berhad
Working Experience Dato Dr. Nik Ramlah was appointed to the Board of
Directors of PNB on 1 January 2019, and Amanah
Saham Nasional Berhad on 1 January 2017. She Working Experience Dato’ Johan started his career in the real estate
retired in March 2016, having worked at Securities division of Citibank. Thereafter, he held various
Commission Malaysia (SC) for almost 23 years holding senior positions in several subsidiaries of public listed
various positions from Manager for Law Reform to companies while venturing into his own successful
Deputy Chief Executive. Throughout her years in the marketing and advertising consultancy and property
SC, Dato Dr. Nik Ramlah has been directly involved development business. He then headed Danaharta’s
in most areas of capital market development and Property Division as Senior General Manager before
regulation, providing strategic and legal guidance moving on to head TTDI Development Sdn Bhd up
in product and market development, bond market, to January 2009. He also served on the Board of
fund management, corporate governance and Islamic Maybank Berhad for nine years up to April 2018.
Finance. Prior to joining the SC, Dato Dr. Nik Ramlah
was an Associate Professor at the Faculty of Law,
University of Malaya, where she had also served as
Deputy Dean.
DATO DR. NIK RAMLAH DATO’ JOHAN ARIFFIN
NIK MAHMOOD Position: Independent Non-Executive Director
Position: Independent Non-Executive Director Age: 61
Age: 64
Date of Appointment: 1 January 2019 Date of Appointment: 1 January 2019
26 ANNUAL REPORT 2019 27LEADERSHIP PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD LEADERSHIP
PNB LEADERSHIP TEAM PNB LEADERSHIP TEAM
Sitting from left to right:
Mohamad Idros Mosin, Rick Ramli, Dato’ Mohd. Nizam Zainordin Sitting from left to right:
Jalil Rasheed, Mohammad Hussin, Adibah Khairiah Ismail @ Daud
Standing from left to right:
Fairuz Suzana Hj Kamaruddin, Noramly Bachok @ Abdul Aziz, Aida Md Daud, Fadzihan Abbas Mohamed Ramlee, Standing from left to right:
Dr Ahmad Basri Ibrahim, Hanizan Hood Muzzaffar Othman, Hafizuddin Sulaiman, Suzana Ahmad, Aziz Anuar, Mohd Irwan Ahmad Mustafa
28 ANNUAL REPORT 2019 29LEADERSHIP PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD LEADERSHIP
PNB LEADERSHIP TEAM PNB LEADERSHIP TEAM
JALIL RASHEED DATO’ MOHD. NIZAM ZAINORDIN HAFIZUDDIN SULAIMAN ADIBAH KHAIRIAH ISMAIL @ DAUD AZIZ ANUAR
President & Group Chief Executive Deputy President & Group Chief Financial Officer Group Head, Treasury Group Head, Company Secretary & Legal Group Head, Public Affairs
Steers the overall investment, financial, operational and strategic direction of Leads and directs PNB’s financial planning, budgeting, reporting and recovery Leads and manages the overall capital and liquidity Oversees and leads PNB’s company secretarial Spearheads the Public Affairs Division which
PNB to ensure business growth and sustainability in achieving the mandate processes, in addition to overseeing all procurement policies and processes management of the business and its correlated and legal functions, provides company secretarial encompasses the departments of Communications
of enhancing the economic wealth of the Bumiputera community and all towards ensuring PNB possesses the financial strength and sustainability to activities such as liability management, fund raising services to PNB and its related companies as well and Education, whilst leading research efforts
Malaysians. Ensures implementation of the company’s vision and mission to execute the company’s Strategic Plan and overall business operations. and implements appropriate Treasury policies with as administers the business processes related through PNB Research Institute Sdn. Berhad.
safeguard the long-term interests of shareholders, unit holders, employees and the objective of maintaining an optimum Treasury to Company Secretary’s Department and Legal Wholly responsible for formulating and executing
other stakeholders. operations and cost efficient capital structure for Department. dynamic corporate branding initiatives, building
the Group. strong stakeholder relations, developing highly-skilled
talent pool as well as implementing sustainability
programmes for the benefit of the nation.
HANIZAN HOOD RICK RAMLI MOHAMMAD HUSSIN MUZZAFFAR OTHMAN AIDA MD DAUD SUZANA AHMAD
Chief Investment Officer, Public Markets Chief Investment Officer, Real Estate Chief Executive Officer & Chief Technology Officer Group Head, Human Capital Chief Risk Officer
Executive Director, ASNB
Leads and oversees the investment, research Leads and drives all of PNB’s business operations Leads ASNB in developing and executing overall Leads the establishment and execution of Leads and drives PNB’s long-term human capital Leads the implementation of Enterprise Risk
and execution teams managing PNB’s proprietary related to property and real estate investments and business strategy to maintain its industry leadership PNB’s enterprise-wide IT strategy and digital strategies and develops human capital frameworks Management (ERM) Framework across PNB
and unit trust portfolios across multiple asset operations, which include land banking activities, position by continuing to increase the reach of transformation, drives the development of aimed at building in-house capabilities to enable Group, by formulating a coherent risk appetite and
classes namely public equities, fixed income and development projects, core investment properties, ASNB’s products and services and enhance the enterprise technology standards, governance the delivery of business results. Also implements infrastructure as well as reporting on enterprise-
money market instruments in both domestic and hospitality, turnaround assets in the country, as experience of its 14 million account holders. processes and performance metrics, and ensures human resource related initiatives that support wide risk management issues to support effective
international markets. Designated Fund Manager well as investments in global real estate assets and alignment of IT strategy with the overall business organisational strategic goals. decision-making and effective risk oversight.
for the funds under management. funds. strategy and the delivery of capabilities required to
achieve business success.
MOHAMAD IDROS MOSIN MOHD IRWAN AHMAD MUSTAFA FADZIHAN ABBAS MOHAMED FAIRUZ SUZANA HJ KAMARUDDIN NORAMLY BACHOK @ ABDUL AZIZ DR. AHMAD BASRI IBRAHIM
Group Head, Strategic Investments Group Head, Private Markets RAMLEE Group Head, Compliance & Integrity Head, Internal Assurance Head, Shariah Management
Chief Strategy Officer
Leads engagement with PNB’s Strategic and Leads and manages all PNB’s private equity Develops and drives PNB’s Strategic Plan as Leads the Compliance & Integrity Division and Leads the internal audit functions to provide Leads the Shariah Management Department which
Core companies in relation to the formulation investments under a structured Private Investment well as monitors its execution to ensure the assumes the key responsibility in planning and independent and objective assurance by assessing assumes the role of Secretariat to PNB’s Shariah
and execution of value creation plans including Framework which enables effective and consistent organisation maintains its strategic focus. executing the Compliance and Integrity Programme the adequacy, efficiency and effectiveness of Advisory Committee, and manages all Islamic
transactional, operational and organisational deployment into this asset class through direct Also leads the Strategic Asset Allocation and for the PNB Group in ensuring full compliance governance processes, risk management and finance and Shariah-related matters within the PNB
initiatives with a view to further strengthen their investments and global fund investments. Transformation functions, which are responsible with all relevant regulatory requirements, internal internal controls implemented by the Management. Group as well as undertakes initiatives to further
overall performance and enhance sustainability of for overseeing PNB’s overall long-term asset policies and procedures in business operations enhance the Shariah compliance of ASNB’s unit
returns for PNB’s stakeholders. allocation, performance evaluation and aligning key while maintaining good corporate governance and trust products.
management processes to strategy. highest ethical standards.
30 ANNUAL REPORT 2019 31MESSAGE 34 Message from the Group Chairman 40 The President & Group Chief Executive’s Review
MESSAGE PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD MESSAGE
MESSAGE FROM MESSAGE FROM THE GROUP CHAIRMAN
THE GROUP CHAIRMAN
On the domestic front, Malaysia recorded REVIEWING OUR STRATEGIC PLAN
a slower growth, with Gross Domestic
Product (GDP) moderating to an average of A seminal development in FY2019 was
DEAR UNIT 4.3% in FY2019, compared to 4.7% in the the Mid-Term Review conducted on the
HOLDERS, previous year. In the recent six years, the
FTSE Bursa Malaysia KL Composite Index
Strategic Plan 2017-2022, to gauge
its status in relation to our strategic
(FBM KLCI) also recorded its fifth yearly priorities, and to identify how we can raise
It is with great pleasure decline of 6%, to close at 1,588.76 on the bar on our performance to a new
31 December 2019. Following the slide level. This has involved formulating and
to share with you the
in stock markets in the major economies implementing frameworks and initiatives
PNB Annual Report in the first quarter of 2020, the domestic towards enhancing sustainable returns,
market has also experienced continued ensuring effective investment and liquidity
2019, which provides setbacks. management, and driving operational and
organisational excellence.
an account of how we CREATING VALUE FOR OUR
UNIT HOLDERS ACCELERATING THE
performed in our drive DIVERSIFICATION OF OUR
Despite the challenges, PNB has in 2019, INVESTMENT PORTFOLIO
to create sustainable weathered the difficult investment climate
and was able to sustain the growth of During the year, we have accelerated the
value for our unit holders
Assets Under Management (AUM) and diversification of our investment portfolio,
and stakeholders for to distribute a total of RM13.2 billion in expanding our investments not only into
income distribution to our unit holders. other domestic asset classes but also
the financial year ended This is based on a conservative investment into the international markets for Fixed
approach that balances the value Income, Public Equity, Private Equity and
31 December 2019 generated from investments made earlier Real Estate. Our diversification has thus
since our inception, against our more recent shifted our investments from predominantly
(FY2019). In order to diversification into new asset classes and Malaysian equity-centric investments, into a
into the global financial markets. broader global portfolio thereby diversifying
ensure the sustainability our risks. This diversification was
PNB’s management of our funds are conducted in a judicious manner, without
of our returns, our
underpinned and anchored by strong affecting our current portfolio of domestic
investment horizon governance practices and effective risk investments and without compromising our
management, to avoid unnecessary risks commitment to our unit holders.
focuses on the longer in delivering our mandate. This consistent
approach has ensured that PNB is able STRENGTHENING OUR ENTERPRISE
term taking into account to maintain its stability, even during down RISK MANAGEMENT (ERM)
market cycles. More importantly, PNB
the fundamental shifts investments have a long-term investment In tandem with this diversification process,
horizon to ensure our continued we have also significantly strengthened
that are taking place in Assets Under sustainability. our ERM to enhance our awareness of
AN INTENSELY CHALLENGING LANDSCAPE Management grew to domestic and global market risks. This
our environment.
During the year under review, PNB’s AUM is in alignment with our conservative
The year 2019 saw a moderation in global economic growth which was impacted by a RM312.0 billion surpassed the RM300 billion threshold investment approach and of conducting
number of non-economic developments. Global geopolitical developments on several to reach RM312.0 billion. An additional risk mitigations to protect our unit holders’
fronts resulted in uncertainties that generated greater volatility in the international financial Income distribution to our 500,000 new account holders placed their wealth. PNB’s investment decision-making
markets. These included the escalating trade tensions between the major economies, unit holders funds with PNB, reflecting a 7.3% increase process also involves multiple independent
uncertainty in Europe and the United Kingdom (UK) over Brexit, and as we entered 2020,
the outbreak of the COVID-19 virus that has now reached global proportions. This has
RM13.2 billion in our Units in Circulation to reach almost layers, beginning at the working level, and
254 billion units. Our 14 unit trust funds flowing on up through the organisation to
also been followed by the collapse in oil prices. now collectively registered a total of 14.3 the Management Committee, Investment
Units in Circulation
million accounts nationwide. Committee and finally to the Board of
Tan Sri Dr. Zeti Aziz
Group Chairman
254 billion Directors.
34 ANNUAL REPORT 2019 35MESSAGE PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD MESSAGE
MESSAGE FROM THE GROUP CHAIRMAN MESSAGE FROM THE GROUP CHAIRMAN
Since establishing the ERM Framework in have resulted in an information revolution
2015, we have continuously reviewed our that has changed the world. For PNB to
financial and operational risk appetites and retain our edge in this new landscape, we
have now identified the respective Key Risk are implementing an organisation-wide
Indicators to ensure alignment with PNB’s Knowledge Management (KM) Framework
Strategic Plan and the Strategic Asset to enable better-informed decision-making
Allocation (SAA) Framework. In FY2019, based on the organisation-wide repository
we undertook a Risk Culture Survey to of knowledge and high quality information
evaluate the current state of risk awareness and data.
and understanding of the key challenges
associated with implementing the ERM The KM Framework will enhance staff
Framework throughout the organisation. accessibility to knowledge and information
that will enable them to make better
Consequently, PNB has adopted a more informed decisions within their respective
unified risk strategy cutting across the functions. The first phase of the KM
various organisational functions that will Framework will be implemented in FY2020,
reduce the duplication of our risk mitigation with the putting in place of a portal
efforts. Our framework and processes consisting of common information that will
have now been enhanced significantly to be accessible by all staff, and a confidential
effectively manage the concentration of risk information platform that will have restricted
exposure of our strategic investments. At accessibility.
the same time, IT enablement measures
have been designed to improve our existing INTENSIFIED ENGAGEMENTS WITH
OUR STABLE OF COMPANIES
technology capabilities to support the risk
monitoring processes and to provide real-
Our Public Equity investments in Malaysia
time insights for faster decision-making.
include Strategic and Core Companies that
To ensure the abilities to deliver on our
span across a broad spectrum of industries
unified risk strategy, we are also enhancing
and sectors. Comprising more than 30% of
competencies and capacities in the risk
our portfolio, it includes banking, property,
function throughout the organisation.
plantation, pharmaceutical, oil and gas,
and telecommunications. It represents a
EFFECTING ORGANISATIONAL
significant touch point on a substantial part
TRANSFORMATION
of the Malaysian economy.
A structured organisational transformation
PNB is therefore well placed to have a
initiative has also commenced in PNB. The
greater role in driving their potential for
aim is to build the capacity for effectively
sustainable growth and development. This
delivering our identified priorities of a is mainly in the form of ensuring stellar developments, both of which we believe Upon completion, Merdeka 118 will be a to offer them the experience of working on The London Underground’s Northern Line
greater diversification of our investments, corporate stewardship and good corporate are heralding in a new era of sustainability- distinctive building in the Kuala Lumpur a large scale project, as part of our efforts extension, which is nearing completion,
an optimal liquidity position and an effective governance while also propagating strong centred property development at PNB. skyline that will also symbolise Malaysia’s in national human capital development. will feature a new underground station
risk management process. In FY2019, ethical values. This is to engender a culture history, its contemporary environment, almost at our doorstep thereby providing
a Steering Committee was established of trust and accountability. While ensuring Merdeka 118 and its future aspirations. We look Battersea Power Station connectivity with other parts of London city.
to oversee the implementation of the The area also features green amenities,
a performance that is sustainable, also forward to revealing its distinctive and
key initiatives under our organisational amongst others, a park, which can be
of importance is the consideration of Within Malaysia, the iconic Merdeka 118 differentiated features to the public at Abroad in the UK, PNB has progressed
transformation plan, which encompasses enjoyed by the surrounding community.
bringing value to the community and to development is targeting to achieve a triple- the official launch in 2022. As we near with the neighbourhood redevelopment of The Phase II of the project, which we jointly
10 key elements that would result in a environmental sustainability. platinum rating - the with Leadership in completion, we are working on creating the Grade II listed Battersea Power Station acquired with the Employees Provident
holistic transformation of PNB. Energy and Environmental Design (LEED), value for the surrounding communities. in London. While encountering challenges Fund (EPF) in 2018, is scheduled to
PROGRESSING WITH OUR the GreenRE and the Green Building Index This is in line with our goals of advancing in the early stages of the project, these be completed by July 2021. Upon its
A key element of our transformation is to PROPERTY DEVELOPMENTS (GBI) certification. This would make it the sustainable development. This includes have now been satisfactorily resolved. It completion, Apple will be the largest office
become a Knowledge-Based Organisation. first project in the country to earn such a the development of small businesses is now full steam ahead, demonstrating tenant occupying approximately 500,000
Recent breakthroughs in information During the year, we have also recorded rating. and entrepreneurs from the surrounding Malaysia’s capabilities on the international square feet, across 6 floors inside the
and communication technologies (ICT) good progress in our two major property precinct, as well as to take on board interns stage. historic icon.
36 ANNUAL REPORT 2019 37MESSAGE PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD MESSAGE
MESSAGE FROM THE GROUP CHAIRMAN MESSAGE FROM THE GROUP CHAIRMAN
INVESTING IN OUR PEOPLE FINANCIAL EDUCATION AND key platform for reaching out to the public. on issues relating to leadership, innovation, We are confident that his leadership would ACKNOWLEDGEMENTS
OUTREACH FY2019 saw the 20th edition of MSAM. On economics, politics and societal elements steer PNB into becoming a distinctive
Following the Mid-Term Review, new behalf of PNB, I would like to record my was well attended by over 500 high-level world-class investment institution. On behalf of everyone at PNB, I would
scopes and functions have been Since its inception, PNB has championed appreciation to the 3.9 million participants participants. like to take this opportunity to record our
introduced across the investment division, the cause of financial education and who have supported us since its inception. MOVING FORWARD appreciation to the Yayasan Pelaburan
reflecting the new areas of focus in the literacy, as well as enhancing access to FUTURE FOCUS ON Bumiputra (YPB) Board of Trustees, for
strategies being adopted. Levelling up our unit trusts. This is to promote greater Our future focus will thus be on ENVIRONMENTAL SUSTAINABILITY As we enter 2020, it is a transition into their trust in PNB to discharge our duties
the skills and capabilities within the financial inclusion, and to empower expanding our digital reach, through uncharted territory. The world was not in with the highest level of responsibility.
organisation is seen as integral and communities with the necessary skills to simple, easily understood and navigable Our commitment to adopt a more a state of preparedness to manage such I also wish to thank my fellow directors on
paramount for this to be achieved. make better informed financial decisions. digital applications and platforms. This sustainability-driven approach in our a health pandemic that has now erupted the Board of PNB for their commitment
Over the medium term, it will contribute is to strengthen financial literacy thereby investments is evidenced from the fact in most parts of the world. The immediate and support towards ensuring that PNB
In FY2019, the number of compulsory towards bringing about sustainable and fostering the development of a more that PNB was the first to adopt the response has to be to do what it takes to continues to deliver sustainable returns to
training days for all levels of employees inclusive socio-economic development. financially savvy society. We will continue ASEAN Green Bond Standards. Our contain its spread so as to save lives. our unit holders.
throughout the organisation was increased to engage with Malaysians of all ages, from Sukuk Programme for the Merdeka 118
from 2.5 days in FY2018, to 8 days in In FY2019, PNB became one of the the tech-savvy millennials, to the pioneering development also fully met the Socially The consequent economic disruption We also wish to thank Datin Paduka Kartini
FY2019. Concurrently, the training budget founding members of the National Strategy golden generation. Responsible Investment (SRI) Sukuk and damage arising from the necessary Haji Abdul Manaf for her dedication and
was increased by 54.6% from RM13.8 of Financial Literacy 2019-2023. With Requirements. Towards advancing our shutdowns have been less for those commitment to PNB throughout her 36
million in 2018 to RM21.3 million in 2019. the digitalisation of society as well as the TOWARDS A MORE ROBUST sustainability journey in the years to come, countries that took early action, and more years of service with PNB. Datin Paduka
As a result, the average training hours per advancement of financial technology CORPORATE MALAYSIA we will begin formalising a Sustainability for those that delayed since the latter Kartini, who retired on 31 December 2019,
employee has increased by more than (FinTech), efforts are also being directed Framework that focuses on delivering would require a more prolonged shutdown. was a longstanding key member of PNB’s
three times to 64 hours in FY2019. towards enhancing the digital financial In fulfilling our greater role to achieve a a positive impact on the economy, the The massive economic and financial policy senior management team, driving PNB’s
literacy skills of the public. more robust Corporate Malaysia, PNB environment, and on the community. PNB’s response by most countries have aimed major merger and acquisition exercises
STRENGTHENING GOVERNANCE has widened our engagements beyond organisational sustainability aspirations at cushioning its impact on employment, and fostering a strong rapport with our
Moving into 2020, we will remodel our our stable of companies, by reaching out are anchored on practising the values of earnings and on overall economic activity. investee companies. We wish her all the
Strong governance provides the structural flagship Minggu Saham Amanah Malaysia to all of Corporate Malaysia. The inaugural a sustainable environment and the goals While the economic pain of the shutdown best with her future.
foundation that is vital for the long-term (MSAM) into a different format which will PNB Corporate Summit in 2019 reflects of achieving an equitable and inclusive may be intense and immense, once lifted,
performance of any organisation. PNB embrace the increased level of the digital our efforts in this direction. The event, society. economic activity can be reignited. In Our deep gratitude is also extended
has consistently maintained a strong content in consumption. This nationwide with the theme of “Rebooting Corporate the intermediate timeframe, a recession to all Board members of ASNB and all
commitment to the highest standards of event, which also brings together our Malaysia”, was officiated by the then LEADERSHIP TRANSITION may be felt before the recovery occurs. PNB group of companies, members of
corporate governance. This is to ensure our investee companies, State Governments Prime Minister, YAB Tun Dr. Mahathir We therefore need to look beyond the the Shariah Advisory Committee and
potential to deliver our mandate to enhance and Government agencies, has been a Mohamad. The gathering which focused In FY2019, PNB witnessed a smooth immediate circumstances. the States’ Fatwa Councils, as well as
the wealth of our unit holders. We have a leadership transition with the appointment Board members, senior management and
multiplicity of layers in our governance of a new President and Group Chief Our position as a major investor in the employees of PNB’s Strategic Companies,
arrangements that ensures oversight, Executive (PGCE) to drive the institution domestic and international markets will for their continuing contributions towards
transparency and accountability. forward in line with our identified strategies. be significantly challenged as markets will the fulfilment of PNB’s mandate.
Dato’ Abdul Rahman Ahmad completed his continue to be confronted with pressures in
All decisions made are guided by robust tenure as PGCE on 30 September 2019. 2020. The strategy going forward is to ride To everyone at PNB who continue to
internal policies and procedures which are On behalf of everyone at PNB, I would like out this challenging period and to be well strive with the company as we face these
continuously enhanced to be in line with to thank him for his valuable contributions to positioned to ride on the recovery when it uncertain times together, I commend
international best practices. Our various PNB and its group of companies during his occurs. In the meantime, in this uncertain and thank you for your hard work and
Management Steering Committees with three-year tenure. He continues to remain environment, our strategic priorities for dedication and look forward to braving the
their distinct functions are cross functional. within the PNB Group in his new role as 2020 will be to continue to pursue our asset challenges of 2020 together.
This is particularly important for project Chairman at Sime Darby Berhad, and also diversification strategy and to enhance
management and operational management. Chairman at Velesto Energy Berhad. our engagements with our Strategic and To our unit holders, we sincerely thank you
The entirety of PNB’s governance process Core companies to contribute towards for your sustained faith and trust in PNB. As
also ensures our ability to uphold the In succeeding Dato’ Abdul Rahman, we enhancing their potential. We will also we forge ahead into 2020, we reaffirm our
strictest level of compliance with all the welcomed on board Jalil Rasheed, who fortify our Risk Management processes, commitment to continue to overcome the
regulations that must be adhered to. joined PNB on 1 October 2019. Jalil has and maintain an upward trajectory in challenges as best we can and to deliver
returned to Malaysia after serving with our organisational transformation efforts the best possible outcomes for our unit
international fund managers abroad, and our communications with all our holders.
and brings with him vast experience stakeholders.
in managing global investments. Tan Sri Dr. Zeti Aziz
38 ANNUAL REPORT 2019 39MESSAGE PERMODAL AN NASIONAL BERHAD PERMODAL AN NASIONAL BERHAD MESSAGE
THE PRESIDENT & THE PRESIDENT &
GROUP CHIEF EXECUTIVE’S REVIEW
GROUP CHIEF EXECUTIVE’S REVIEW
DEAR UNIT Q&A
AGAINST A SHIFTING BACKDROP AND IN A VOLATILE, UNCERTAIN, COMPLEX AND
HOLDERS, AMBIGUOUS (VUCA) ENVIRONMENT, HOW WILL PNB ENSURE THAT IT CONTINUES TO
DELIVER SUSTAINABLE RETURNS TO ITS UNIT HOLDERS IN THE LONGER TERM?
As the President and Keeping True To Our Mandate short-term impact on our dividend payout to
our unit holders for the year. While the paper
Group Chief Executive We are guided by our mandate of enhancing our
impairment was unavoidable, most importantly,
unit holders’ wealth and believe in maintaining
by reflecting the current stock value, PNB has
(PGCE) of PNB, I am sustainable and stable recurring long-term returns
paid out clean profit based on the existing market
that our unit holders can rely on.
value of these stocks.
pleased to present
Our central proposition in maintaining sustainable
Aggressively Pursuing Our Portfolio
the company’s Annual returns is to pay out realistic yields that reflect
Diversification Strategy
market conditions, as opposed to those that
Report for the financial do not accurately reflect the true circumstances To ensure we continue to deliver sustainable
impacting our assets. In providing investment returns to our unit holders, we have fine-tuned
opportunities, PNB undertakes the associated our strategy based on the outcomes of the Mid-
year ended 31 December market risks and employs a prudent investment Term Strategic Review we conducted in FY2019.
management approach to ensure we consistently We are aggressively pursuing a phased portfolio
2019 (FY2019). During deliver on our mandate. diversification into international markets and
different asset classes, which allows us to spread
the year, PNB continued Delivering Realised Gains our risks across various markets, rather than
over concentrate it on the domestic Public Equity
to operationalise our The income distributed by PNB's unit trust
market. This is being done both internally and
PNB’s AUM funds are based on realised gains for the year,
through outsourcing.
strategic objectives and in 2019 which takes into account the impact of tough
market conditions. In FY2019, PNB’s domestic
Effecting Better Liquidity and Financial
Total AUM investment was impacted by the FBM KLCI’s
prudently conducted our Management
RM312.0 weak performance, which posted its fifth yearly
decline in the past six years and was one of We have implemented focused measures towards
investments with the aim billion the weakest performing indices globally. With better managing our liquidity by setting up the
approximately 68% of our investment portfolio Treasury Desk, and more effectively managing
of delivering sustainable concentrated in the domestic Public Equity our risks. These include processes that take
Proprietary Funds market, this significantly impacted our realised into account global market risks that we may be
returns to our unit
RM47.9 gains for the year. However, our global portfolio
diversification generated greater returns from our
subject to as a result of our international portfolio
diversification. The newly-created Treasury Desk
holders in line with our billion international investments, which offset the lower oversees PNB’s liquidity management, funding,
returns from domestic investments, and enabled foreign exchange and all aspects of PNB’s
mandate. 2019 PERFORMANCE HIGHLIGHTS Unit Holders’ us to generate sustainable and stable realised treasury operations.
Investments gains.
Practising Strong Governance
Our Group Chairman, YBhg Tan Sri Dr. Zeti Aziz has explained in her message how RM264.1 Conducting Impairments to Reflect Actual
We are engaging more intensely with our Strategic
FY2019 was a challenging year, with international and domestic growth impacted
by various geopolitical and macroeconomic developments. Developed economies
billion Market Performance
and Core Companies by providing strong
All our investments in shares, fixed income corporate stewardship and promoting good
recorded moderate growth, with the exception of Japan which had a higher rate of securities, properties and receivables are subject corporate governance, to guide our investee
growth on the back of fluctuating crude oil prices. International and domestic markets Fixed Price Funds
to impairment assessments at the end of each companies’ sustainable growth and performance.
remained volatile, due to market uncertainties that arose from unresolved trade disputes RM253.2 financial year, in line with PNB’s accounting policy Underpinning this is PNB’s robust governance
and geopolitical uncertainties. of cost less permanent diminution in value. In structure and processes, which guide and inform
billion FY2019, we conducted an impairment exercise our investment decisions through multiple,
Nonetheless, PNB navigated these challenges to deliver stable performance for the in relation to assets we own to reflect the change independent layers that promote transparency
Variable Price in value of the companies, due to the challenging and accountability. To ensure we have the
year. Our AUM increased by 4.5% to RM312.0 billion in FY2019, reflecting the trust of
Funds economic and market climate. capability to deliver on our promise to our unit
our unit holders in PNB’s ability to deliver sustainable long-term dividends. A total of holders, we are committed to an organisational
RM47.9 billion of our AUM consisted of proprietary funds, whilst RM264.1 billion is the RM10.9 We conducted the impairment in line with our transformation journey that will support our value
Jalil Rasheed unit holders’ investments comprising both Fixed Price and Variable Price Funds. billion conservative impairment policy, which had a creation efforts for our unit holders.
President & Group Chief Executive
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