UMW mulls energy venture
Malaysian conglomerate UMW Holdings Bhd, which has interests in the auto and oil and gas businesses, is mulling the possibility of entering the energy business, as part of its long-term plan to diversify its earnings base. President and Group Chief Executive Datuk Syed Hisham Syed Wazir said the group has received numerous proposals on how it can do this. “But we haven’t made any decisions yet and are still evaluating all the proposals… We will only make a decision by year-end,” Syed Hisham said. UMW, which is 55.5% owned by state fund manager Permodalan Nasional Bhd, is well-known for assembling and selling Toyota vehicles in Malaysia. It also distributes heavy equipment like excavators, as well as Pennzoil-branded lubricants, and makes auto parts like absorbers. Last year, its net profit jumped more than a third to RM512 million (US$171 million) as revenues rose by a fifth, to RM12.8 billion (US$4.2 billion). Syed Hisham said the group is on track to turn in revenues of RM15 billion (US$5 billion) by 2013, barring any unforeseen circumstances. (April 28,2011)