TNB says 60% of profits channelled back to Malaysians

 

TNB is dedicated to making clean energy accessible, affordable and beneficial, according to its chairman, Abdul Razak Abdul Majid.

PETALING JAYA: 

Around 60% of Tenaga Nasional Bhd’s profits have been channelled back to Malaysians by way of dividends to government-linked investment companies, which in turn benefit the people, according to its chairman Abdul Razak Abdul Majid.

He said TNB recorded a strong and sustainable financial performance in 2024, and its profits would ultimately benefit companies such as Permodalan Nasional Bhd, Khazanah Nasional Bhd, the EPF, Retirement Fund Incorporated and Tabung Haji.

This meant that TNB’s profits would boost the financial security of retirees and working Malaysians in both public and private sectors, contributing to the nation’s long-term economic stability, he said.

“Our commitment goes beyond providing electricity – we are lighting up Malaysia’s future,” said Razak in a statement. “We are not just focused on financial sustainability but on reinvesting our success back into the nation – supporting Malaysians through pension funds, economic development and affordable energy solutions,” he said.

The utility firm’s structured profit policy sees to it that the company’s profits are channelled back into initiatives that would directly improve the lives of Malaysians.

This includes the village street lighting programme launched in 2000, in which TNB installed more than 525,000 street lights in villages, boosting safety and connectivity in rural areas.

Last year, the company installed 14,210 energy-efficient LED street lamps, funded under the 12th Malaysia Plan.

TNB’s strong financial performance also enables it to reinvest its profits into the national infrastructure, enhancing energy efficiency and expanding the people’s access to affordable and clean energy, the statement said.

The company said its profitability does not affect electricity tariffs, which are regulated by the government.

TNB president and CEO Megat Jalaluddin Megat Hassan said reinvesting TNB’s profits in grid efficiency would maintain affordability while curbing any unnecessary increase in costs for Malaysians.

On the other hand, people-centric initiatives such as solar power incentives and time-of-use tariffs help to lower their power bills, he said.

“We understand that Malaysians want fairness and transparency. Our commitment is clear – profits are not taken for granted but returned to the rakyat through better services, stable tariffs and long-term energy security.

“When TNB grows, Malaysia prospers. This isn’t just about profits, it’s about ensuring a future where every Malaysian benefits from reliable, sustainable and fairly priced energy,” said Jalaluddin.

TNB is also expanding its corporate social responsibility initiatives, particularly with the goal of making tangible enhancements in four key pillars: education, sports, community wellbeing and environment.

“These initiatives include expanding electrification projects in rural areas, providing education and skills training programmes and funding community-driven sustainability projects,” he said.

Jalaluddin said TNB remained committed to driving national progress and ensuring every Malaysian benefitted from the utility firm’s success, while leading the way in sustainability for the sake of future generations.

The utility firm is leading Malaysia’s transition towards cleaner energy by expanding its investments in solar, hydro and green energy projects, while investing in smart energy solutions to empower consumers on managing consumption effectively.

It is also enhancing the national power grid to ensure greater energy efficiency and reliability while allowing for the integration of green energy in the nation’s power mix, the company said.

“Sustainability is not just a goal – it’s our responsibility to future generations. TNB is dedicated to making clean energy accessible, affordable and beneficial to all Malaysians,” said Razak.

To highlight these initiatives, the electricity bill for 85% of the consumers which receive subsidies will be labelled green, symbolising the government’s vision to protect people’s wellbeing and at the same time focusing on energy sustainability.

This method aims to raise awareness among the public about the benefits provided by the government, Jalaluddin said.

TNB seeks to drive Malaysia’s development while ensuring everyone stands to benefit, he said. “Every light we turn on, every business we empower, every home we energise – this is what nation-building looks like. We are here to serve and brighten Malaysia’s future together.” - FMT