To assess investment performance, we are able to look at the annual report of our investment (ASB investors can refer to ASB annual report). As a concerned investor, we can always carry out in-depth study of the project background as well as its risk profile. Since our investment with PNB is easy to liquidate, if we don’t trust PNB anymore in investing our money, there are other investment options for us to use.
Investing in high-risk business may expose them to bigger potential of losing their wealth. Therefore, in order to keep their investors from investing somewhere else, they need to keep on investing in low risk sectors while maximizing profit.
A little bit of background regarding the 14.5ha land purchase (location of Stadium Merdeka and Stadium Negara):
16 years ago, PNB paid RM 220 per sqft to Pengurusan Danaharta Nasional Bhd. 10 years later, the market value of the land has appreciated to RM 800 per sqft (source: http://www.thestar.com.my/business/business-news/2010/10/23/warisan-merdeka–a-beacon-to-pnbs-future/). I think they already made some profit there.
Instead of cashing in the profit, they decided to grow it by doing more development to surrouding land while preserving heritage value of those two buildings mentioned before.
The project is handled by PNB Merdeka Ventures Sdn Bhd, a company wholly-owned by PNB. As a concerned citizen (and investor), there are many opportunities for us to voice out our concerns and learn more about the project so that opportunists won’t be able to take advantage of our ignorance.