TNB returns RM2.96bil to the rakyat

New Straits Times

22-05-2025

TENAGA Nasional Bhd has reaffirmed its commitment to long-term value creation through disciplined capital management, operational resilience and community-focused investments that benefit shareholders and the nation alike.
Reflecting the commitment, TNB's board has declared a total dividend of 51 sen per share, the highest in four years, amounting to RM2.96 billion.
This is in line with the company's dividend policy of a 60 per cent payout ratio and delivers direct financial benefits to millions of Malaysians, as more than 60 per cent of TNB shares are collectively held by major government-linked investment companies (GLICs).
They include Permodalan Nasional Bhd, the Employees Provident Fund, Khazanah Nasional Bhd, Kumpulan Wang Persaraan and Lembaga Tabung Haji.
It also reflects the group's consistent track record of sustaining dividend payouts at the upper end of its 30 to 60 per cent policy range for the past eight years.
"This dividend payout reflects TNB's commitment to delivering consistent, sustainable returns to our shareholders," said TNB chairman Tan Sri Abdul Razak Abdul Majid at the company's 35th annual general meeting (AGM) at Pusat Konvensyen Leo Moggie, TNB headquarters in Kuala Lumpur.
"These distributions ultimately reach millions of Malaysians, reinforcing national savings, retirement security and broad-based financial wellbeing," he added.
In 2024, TNB also contributed RM874.7 million in tax and zakat, strengthening public finances and supporting community wellbeing nationwide.
Advancing Inclusive Growth Through Social Investment
TNB's commitment to nation-building goes beyond financial returns. Through targeted programmes in education, community development and wellbeing, the company channels long-term investments into meaningful outcomes.
In 2024, TNB allocated RM140.9 million in contributions and sponsorships across areas such as education, sports and community wellbeing and environment.
TNB's initiatives aim to uplift underserved communities, bridge opportunity gaps, and foster social cohesion.
Through scholarships, educational programmes, and rural outreach, the company empowers future generations and drives long-term impact.
These efforts reflect the company's commitment to shared prosperity and nation-building beyond its core utility role.
As part of its rural outreach efforts, TNB advanced Phase 11 of the Village Street Lighting Programme in 2024, installing over 14,000 energy-efficient LED lights in underserved areas, enhancing safety, connectivity and economic inclusion.
Driving Operational Excellence with Purpose
While TNB's social investments uplift communities, its core strength lies in the rigorous execution of its operational and strategic priorities.
TNB president and chief executive officer Datuk Ir. Megat Jalaluddin Megat Hassan affirmed the company's focus on sustaining strong returns while investing in the systems and communities that support national development.
"Our strategy is clear - we aim to maintain robust performance while generating long-term value for the rakyat through responsible returns and meaningful impact," said Megat Jalaluddin.
"By strengthening the reliability of our services, managing costs effectively, and anchoring our efforts in nation-building, we continue to deliver steady value even amid global uncertainties."
This disciplined approach to resilience and responsible leadership is also reflected in how TNB continues to deliver value, both to its shareholders and to the broader economy.
Staying the Course with Focus and Purpose
Despite global headwinds and evolving industry dynamics, TNB's fundamentals remain strong.
The group continues to invest in grid reliability, digital capabilities and operational excellence, ensuring that it remains agile and responsive to future challenges.
These translate into fewer power disruptions, faster service recovery and more efficient energy management, ultimately ensuring Malaysians enjoy reliable, secure and affordable electricity.
TNB's strong performance also benefited from a confluence of favourable macroeconomic conditions, including a strengthening ringgit and 5.1 per cent national gross domestic product growth, coupled with prudent cost management and operational efficiency.
The improving macro environment helped spur business activity and consumer confidence, which in turn supported demand growth for electricity across industrial, commercial and residential sectors.
These conditions collectively reinforced TNB's resilience in a dynamic operating environment.
Malaysia's record-high approved investments of RM378.5 billion in 2024, as reported by Investment, Trade and Industry Ministry, also translated into stronger industrial and commercial electricity demand.
In this respect, TNB believes it has played a role in sustaining investor confidence and driving long-term economic growth by ensuring a stable and reliable energy infrastructure.
These achievements reflect not only TNB's operational excellence but are also aligned with national aspirations of delivering reliable infrastructure, promoting inclusive growth and accelerating the energy transition. It is also in line with Ekonomi Madani, the national framework for shared prosperity, sustainability and social wellbeing.
Delivering Tangible Progress Across Priority Areas
In 2024, TNB invested RM11.2 billion in capital expenditure to accelerate grid modernisation and drive the national energy transition.
This includes key upgrades that support the integration of renewable energy and strengthen network resilience across Peninsular Malaysia.
The company also maintained a high customer satisfaction index score of 87 per cent, reflecting sustained efforts to enhance service quality and customer experience.
Capping off a year of operational excellence, TNB's MSCI ESG rating was upgraded to 'A', cementing its leadership in sustainability.
The rating reflects significant strides in reducing carbon emissions, improving water efficiency and expanding renewable energy adoption.
This ESG upgrade not only affirms TNB's commitment to responsible business practices but also aligns with Malaysia's broader sustainability ambitions.
It also strengthens investor confidence, supports the country's net-zero aspirations and demonstrates TNB's environmental leadership.