This article first appeared in The Edge Financial Daily on July 21, 2017

Malaysia’s national utility Tenaga Nasional Bhd (TNB) has expanded its footprint beyond the local borders over the years to Turkey, India, the UK and countries in the Middle East. These are strategies the government supports as it helps raise its value as a listed entity.

Prime Minister Datuk Seri Najib Razak said TNB should continuously look at increasing its value on Bursa Malaysia where its current market capitalisation stands at RM80 billion.

TNB started expanding outside Malaysia last year with the 30% acquisition of Gama Energi, Turkey, and GMR Energy, India, respectively for US$300 million.

In March, TNB’s wholly-owned subsidiary TNB International Sdn Bhd acquired a 50% stake in UK-based Vortex Solar Investments Sarl, which is one of Britain’s largest solar power asset operators, for £86 million.

“While TNB’s value increases, so would the weightage of its brand value. Therefore, Khazanah Nasional Bhd, as its major shareholder, would be able to earn big returns.

“TNB’s strategy of becoming a regional and global player fits well with the government. We will always protect and support TNB’s policies based on its goals of raising its value as a corporation, and supplying electricity to Malaysians,” he said at TNB’s Hari Raya Aidilfitri open house recently.

He viewed TNB as a world-class “infra-rakyat” (public infrastructure) organisation which is what the government seeks in a government-linked corporation to achieve the nation’s goals.

“TNB plays an important role in providing energy to Malaysians, instantaneously driving the industry and generating economy,” he said.

The prime minister said TNB’s commitment to improve stems from its slogan to be “Better. Brighter” and to “keep the lights on”, a pledge its staff made to Malaysians.

“TNB’s achievement is a result of its aim to succeed, and support by its 35,900 staff. The cooperation between TNB and the government boosts TNB’s achievement not only in Malaysia but also regionally,” Najib added.

Meanwhile, Najib urged TNB to continuously innovate and reinvent, and check its weaknesses and strength to remain at the forefront of competition.

He congratulated TNB’s 24th ranking in London-based Brand Finance’s Global Top 50 utility brands in 2017 or Utilities 50 (2017) in March from the 39th placing last year.

TNB said the ranking represented a 33% jump for its brand value of US$1.58 billion from US$1.19 billion in 2016.

“TNB’s ranking was achieved although more than half of the brands in 2017’s list declined in value. They include the top three utility brands — France’s Engie SA, and Electricite de France SA, and Italy’s Enel SpA.

“This means TNB’s strategy lately is successful, and so it should not remain static and still, but continue to improve its quality as a staff and a corporation,” Najib said.

TNB chairman Tan Sri Leo Moggie said the corporation held strong to its mission to drive the country’s progress by providing energy infrastructure in every world-class sector.

“We are committed to enhancing the strong cooperation between TNB and the government in moving the nation. It helps us to stand firmly on par with other utility companies,” he said.