The five subsidiaries that Permodalan Nasional Bhd (PNB) was recently told to dispose of are small firms involved in non-core businesses, says group president and chief executive Hamad Kama Piah Che Othman.

The disposal is justified as it enables the group to focus on its bigger subsidiaries, he told reporters today after visiting the Kota Kinabalu Sports Complex, the site of PNB’s Unit Trust Week 2012.

Prime Minister Najib Abdul Razak announced earlier that five companies each under the stable of PNB, the country’s biggest fund manager, and Khazanah Nasional Bhd, the government’s investment arm, would be disposed of to enable their assets to be acquired by bumiputera firms through open tender.

The disposal would also provide the opportunity for bumiputera firms with a proven track record in management to take over the companies to develop them further, Najib, who is also Finance Minister, added.

Hamad Kama Piah said PNB advised companies under its stable including Maybank, Sime Darby and UMW to focus on their core businesses after analysing their performances.

“So we advised them to hive off their non-core businesses litle by little,” he said, adding the disposal would be transparent and by open tender.

“We also hope that with the disposal, operations would be more efficient and better than before,” he said.

On the ongoing investment education fair, he said the high number of visitors shows the people in Sabah are keen to learn more about PNB and its subsidiaries.

- Bernama