Strains in debt-laden Malaysian companies stir concerns

Petronas posted a quarterly net loss of RM21 billion (S$6.9 billion) for the period ending June 30, 2020. -PHOTO: REUTERS

KUALA LUMPUR, Sept 22 (The Straits Times/ANN) - The financial woes of two large and prominent local companies are stirring concerns about the overall health of corporate Malaysia - particularly debt-laden publicly listed entities - amid the Covid-19 pandemic.

The problems facing casino tycoon Lim Kok Thay of the Genting Group, Malaysia's richest businessman, and record losses at national oil company Petroliam Nasional Bhd, or Petronas, the country's richest entity and its sole Fortune 500 listing, suggest that companies in corporate Malaysia that are heavy on debt and light on cash could be in for some challenging months if the international economic outlook does not pick up.