KUALA LUMPUR: Permodalan Nasional Bhd (PNB) is optimistic of the country's economic growth this year on the back of strong showing in the first six months.
PNB chairman Tan Sri Abdul Wahid Omar said while Malaysia's overall performance in the first half had been good, the local stock market had gained 8.0-9.0 per cent.
"We are positive that this year will be better than last year," he said at PNB's Hari Raya do here today.
He said demand and consumer sentiment will continue to pick up, in line with the rosy economic outlook. This will be supported by good banking system and higher exports.
"Hence, companies will generate more sales and optimise their costs," he said, adding that PNB expects the country’s gross domestic product to grow between four and five per cent this year.
On capital flow, Wahid said foreign investors had returned to the country.
"In terms of fixed income and equity, it (the foreign fund inflow) has been encouraging," he said.
PNB, Malaysia's largest fund manager, has seen the value of its strategic companies increased by 18 per cent in the first half.
"This has resulted from our current strategic plans from companies like Sime Darby Bhd, UMW Holdings Bhd and S P Setia Bhd. We will continue our effort to implement various strategies in the future," he said.
Wahid said PNB is focusing on companies with high growth potentials.
PNB wanted to grow its foreign investments from the current two per cent of the total portfolio, he said.
“The bulk of our (future) investments abroad will be in equity, property and private investments," Wahid added.