THE Sarawak government is closely monitoring its investment in troubled Serba Dinamik Holdings Berhad and will not make a decision “in the heat of the moment”, Deputy Premier Douglas Uggah Embas told the state assembly this afternoon.

“We wish not to reach a position whereby too often, investment decisions are made based on isolated and short-term considerations without regard to the portfolio as a whole,” he said.

“The state’s investments are intended for long-term value appreciation and not for short-term trading.”

On Monday, Batu Lintang assemblyman See Chee How urged the state government to brief legislators on the losses suffered by the state treasury and all government-linked agencies that have invested in the oil and gas company and how they are going to recoup the losses.

See said the Serba Dinamik Integrated Report 2021 shows that as of December 2 last year, the State Financial Secretary Sarawak held 159.5 million shares and 36 million warrants in the company while Lembaga Kemajuan Bintulu owned 21 million shares and six million warrants.

“All investments carry some degree of risk,” said Uggah, who is also the state’s second finance minister.

“No guarantee can be given on future performances 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.”

Uggah described the company as “currently going through a series of interim setbacks”.

He said any investment by the state in a listed stock is based on “thorough analysis and assessments on the company’s fundamentals, financial and potential prospects and growth”.

He said when the state participated in Serba Dinamik’s initial public offering in 2017 and subsequent investment prior to the Covid-19 epidemic, the financial position of the company was strong with revenue of RM2.72 billion in 2017 and RM4.52 billion in 2019.

He said Serba Dinamik’s profit after tax was RM304.79 million and RM497.98 million in 2017 and 2019 respectively.

The company’s performance was such that the state had received RM22.552 million in dividend payout, he said.

“In addition, the state has also received share split and bonus issues, totalling 66 million shares,” he said.

Serba Dinamik was accused of submitting a false statement to Bursa Malaysia last year.

Four of the company’s senior officials, including chief executive Abdul Karim Abdullah, were, however, acquitted of the charges after full settlement of the company’s RM16 million fine imposed by the Securities Commission. – May 26, 2022.