By Abdul Hamid A Rahman
KUALA LUMPUR, Dec 22 (Bernama) -- Expanding bumiputera participation in commercial real estate is an important lever in Malaysia’s nation-building agenda, with Pelaburan Hartanah Bhd (PHB) acting as a key institutional platform to drive wealth creation and economic growth.
The government-linked institution views commercial real estate not merely as an asset class but as a mechanism for capital formation and economic participation, enabling bumiputera investors to gain exposure to sustainable, income-generating properties.
Its group managing director and chief executive officer Mohamad Damshal Awang Damit said this broader nation-building role has guided his leadership approach since assuming the position, with a focus on strengthening PHB’s resilience, relevance, and sustainability over the long term.
Three core pillars of the PHB strategy
He said PHB’s strategy is anchored on three core pillars -- strengthening financial resilience, institutionalising key business functions and developing internal talent -- to support the firm’s ability to deliver its mandate in a disciplined and sustainable manner.
“Our mission is clear -- to strengthen PHB’s fundamentals so that the institution can continue to serve bumiputera participation in owning commercial real estate and contribute meaningfully to nation building, not just today but for decades to come,” he told Bernama in a recent interview.
He said PHB delivers its mandate primarily through Amanah Hartanah Bumiputera (AHB), a Shariah-compliant unit trust fund managed by the group that enables bumiputera participation in the ownership of prime real estate through investments.
Mohamad Damshal said bumiputera participation in commercial real estate remains small compared with the overall property market, underscoring the need for institutional platforms such as PHB to help narrow the gap.
He explained that real estate monetisation has a multiplier effect on the economy, enabling businesses to become “asset-light” by unlocking capital tied up in property and reinvesting it to expand operations, acquire land, or create jobs.
This reinvestment helps stimulate wider economic activity, where every RM1 unlocked can potentially generate up to RM3 in value across the economy.
“Through this structure, bumiputera investors are not just receiving dividends from unit trust holdings, but are also indirectly participating in broader economic development through capital recycling and expansion,” he said.
Strengthening financial resilience
Financially, Mohamad Damshal said PHB has strengthened its balance sheet through capital market funding, including the RM5.0 billion Sustainability Sukuk Murabahah Programme, which carries ratings of “AAA/Stable/P1” from RAM Ratings.
He said the inaugural RM1.5 billion sukuk issuance in September 2024 was oversubscribed by 2.2 times, generating an order book of about RM3.0 billion, allowing PHB to lower its cost of funding and redeploy capital into strategic investments.
Institutionalising key business functions
Operationally, PHB has institutionalised key business functions by insourcing asset management, property management, and facilities management into dedicated subsidiaries, enhancing accountability, productivity and cost efficiency across the group.
“This was about going deeper into our assets rather than expanding outward, ensuring every function operates with a clear return-on-investment mindset,” he said.
The restructuring has contributed to stronger operating performance across PHB’s property portfolio and improved financial outcomes.
Developing human capital
Mohamad Damshal said that while financial strength and operational discipline are critical, PHB recognises human capital as its most important asset to translate strategy and structural reforms into sustainable performance.
This led PHB to elevate talent development as a strategic priority by establishing a dedicated centre of excellence (CoE).
The CoE is aimed at professionalising training, embedding structured learning pathways and nurturing future-ready leadership across the organisation.
He said the initiative has shifted talent development from an ad hoc approach to a disciplined, outcomes-driven framework, enabling employees at all levels to continuously upgrade skills and adopt a stronger commercial and governance mindset in support of PHB’s long-term mandate.
Boosting sustainability focus
On sustainability, Mohamad Damshal said PHB’s efforts focus on a structured environmental, social and governance (ESG) framework that integrates sustainability into both investment decisions and day-to-day operations.
He said the group recently secured an upgrade to “Gold 1” in RAM Sustainability’s corporate sustainability rating, including a “Platinum” rating for the social pillar, reflecting PHB’s role in advancing bumiputera participation through AHB.
“The upgrade validates the work we have done across ESG pillars, particularly in ensuring that the value we generate translates into tangible benefits for bumiputera unitholders and the wider economy,” he said.
On the environmental front, he said PHB’s strategy is guided by the PHB Energy Roadmap 2024-2030, which aligns the group’s property portfolio with Malaysia’s Net Zero 2050 ambition through measurable and implementable targets.
As part of the roadmap, 17 buildings out of 28 buildings have been equipped with energy monitoring systems, alongside energy audits, engineering-led upgrades, and renewable energy initiatives to improve efficiency across the portfolio.
“By 2030, these initiatives are expected to save close to 37 million kilowatt-hours annually, equivalent to nearly a 44 per cent reduction in energy consumption, with renewable energy contributing about seven per cent of total usage,” he said.
Mohamad Damshal noted that AHB’s consistent returns of about five per cent per annum, net of zakat, alongside PHB’s strong sustainability focus, have driven higher investor confidence and demand, with recent fund tranches fully subscribed in less than a month compared with up to 18 months previously.
Today, AHB’s assets under management stand at RM5.0 billion, comprising 22 properties and benefiting more than 82,000 bumiputera unitholders nationwide, supported by stable rental income from fully tenanted commercial assets.
Prospects
Looking ahead, he said PHB is exploring longer-term opportunities to invest in overseas properties while continuing to prioritise domestic assets, and is accelerating its digital strategy through online platforms and planned mobile applications.
He said PHB may also consider additional unit trust offerings in the future, although its immediate focus remains on strengthening AHB, with property remaining the core asset class.
“Our focus is to remain disciplined, relevant and accessible in a digital-first environment, while staying true to our mandate of strengthening bumiputera participation in commercial real estate ownership and contributing to national development,” he said.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
