Investment Policy Guidelines & Objectives

Prior to 2006, no investments were undertaken for MRDC and subsidiary companies due to non existence of an Investments Division under the structure and absence of proper approved policy guidelines for the respective companies except for MRSM which was approved by the MSRM Board in September 2005. The investment policy guidelines for MRDC and MROT N0 2 were approved in August 2006 whilst the policy guidelines for the petroleum companies including PRK, PRG and PRM were approved in September 2007.

The vision of the new Management team was to have proper policy guidelines to guide investments for all companies and also spread the risks into all five asset classes. This was also for prudent management and proper reporting purposes.

The objective of the policy guidelines was basically to maximize the returns on the investments within manageable risk levels associated with each asset class and over time, generate capital growth for the investments. Consistent with this objective, the philosophy is also to undertake capital stable investments that can yield acceptable returns and have the ability to sustain adverse economic conditions. To achieve such results, MRDC and subsidiary companies pursue a diversified investment portfolio approach rather than speculative investments which the respective policy guidelines also do not allow.

By end of 2008, MRDC and its subsidiary companies all had proper investment policy guidelines approved by their respective Boards.