GOVT OPTIMISTIC ON PETRONAS CHEMICALS GROUP'S GROWTH PROSPECTS, SAYS NAJIB

KUALA LUMPUR, Nov 2 (Bernama) -- The government is optimistic about
Malaysia's Petronas Chemicals Group Bhd's growth prospects, both in expanding into
more complex petrochemical products and supporting upstream and downstream
industries, said Prime Minister Najib Razak.

"We have great faith and high expectations that Petronas will contribute to
drive innovative new development and reinforce Malaysia's reputation as one of
Southeast Asia's premier petrochemicals production hubs," he said.

He said the listing of Petronas Chemicals Group, expected to be one of the
largest ever undertaken in Southeast Asia, would contribute significantly to the
expansion of Malaysia's capital markets by increasing the liquidity needed to
fuel economic growth.

Upon successful listing, he said, it would comprise a significant portion of the
FTSE Bursa Malaysia KL Composite Index.

"By end of this year, the Petronas Group could collectively account for over 10
per cent of Bursa Malaysia's total market capitalisation, and over 16 per cent
of the FTSE Bursa Malaysia KL Composite Index," he said when launching the
group's prospectus.

The text of his speech was read out by his deputy Muhyiddin Yassin.

The company's initial public offering of up to 2.48 billion shares comprise an
offer for sale of up to 1.78 billion existing shares and a public issue of 700
million shares to Malaysian and foreign institutional and selected investors at
the institutional price.

Najib said the oil and gas industry comprised over 10 per cent of the national
gross domestic product, making it one of the main contributors to Malaysia's
prosperity.

"Oil and gas are some of our nation's most visible and valuable assets, which is
why we have focused on this as one of the 12 National Key Economic Areas under
the 10th Malaysia Plan," he added.
-- BERNAMA



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