Multi-Purpose seeks foreign partners

Diversified group Multi-Purpose wants to grow big in stockbroking, which now accounts for less than 5 per cent of group revenue 
 
Diversified group Multi-Purpose Holdings Bhd (MPHB) (3859) is turning to foreign partners to help it grow its stockbroking business, its chief says.

"We are talking to a foreign bank with global presence. The bank will bring in institutional investors who want to invest in Malaysian stocks. We want to grow big in stockbroking, but it won't be easy to grow the business by ourselves," managing director Datuk Lau Kim Khoon @ Surin Upatkoon told Business Times in an interview.

Stockbroking activities currently account for less than 5 per cent of group revenue, with its clients comprising mainly local retail investors.

Lau said MPHB was also looking to grow its insurance business in the country. It owns 100 per cent of Multi-Purpose Insurans Bhd, which saw revenue expand to RM415 million last year from RM60 million in 2002.
"We are looking at organic growth. We are not going overseas as it is a regulated business. Our insurance arm is doing very well here."

MPHB was incorporated in 1975 and listed on Bursa Malaysia in 1982. Lau joined MPHB in 2000 and holds a 34 per cent stake.

"I came in when MPHB was in a difficult period. There was so much cost holding. It was laden with debt of RM2.4 billion in 2002. We took a rationale approach to sell our core assets," Lau said.

"While there are regrets, it was a wise decision. Only after reducing the debt, we could breathe. Today, the group is heading upwards and debt-free."

Lau said MPHB will be taken to a new level, but ruled out taking on new businesses to grow.

MPHB sold its stakes in Multi-Purpose Bank (now Alliance Bank), Bandar Raya Development Bhd and Sarawak Enterprise Corp Bhd to reduce its debt.

Lau, a Thai citizen, has lived in Malaysia for over 30 years.

He has several private investments, including a 32 per cent stake in listed Malaysian Weaving Enterprise Bhd (MWE), which is involved in manufacturing garments, lighting and telecommunications products.

The Penang-based MWE was founded by Lau's late father.

Lau also has an indirect stake in Shin Corp, a US$4 billion (RM12.7 billion) company which holds 40 per cent of AIS, the biggest mobile service provider in Thailand.





by Sharen Kaur