This article first appeared in The Edge Malaysia Weekly on November 18, 2019 - November 24, 2019

Last week, Urusharta Jamaah Sdn Bhd (UJSB), the special-purpose vehicle established by the finance ministry to assist in the rehabilitation of the assets taken over from Lembaga Tabung Haji, said the losses for the government would amount to RM10.3 billion if the assets it has taken over from the pilgrim fund do not depreciate further.

The non-performing assets, comprising stocks in listed companies, properties and one unlisted plantation asset under TH, were transferred on Dec 28 last year.

UJSB said the transfer of the assets was a result of previous financial mismanagement and wrongdoings. Now that it has been completed, UJSB will continue with its mandate and purpose to carry out the rehabilitation and restructuring of assets under its care, maximise asset recovery value, and redeem all monetary instruments issued by it and subscribed for by TH in a timely manner.

While it is good to clarify the matter, UJSB should be more forthcoming on the specifics. For example, what sort of measures has it taken to ensure that the value of the shares and other assets it holds is preserved?

After almost a year, what is the progress in restructuring and value recovery?

One of its holdings is TH Heavy Engineering Bhd, which has been categorised as a PN17 company for 2½ years. However, it has to be noted that UJSB also has some gems such as a 6.6% stake in construction company IJM Corp Bhd.

Strategically, what does UJSB plan to do with its portfolio? As at Jan 3, it held substantial stakes, ranging from 29.8% in THHE and 28.66% in Pelikan International Corp Bhd to 5.11% in Gadang Holdings Bhd.

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