KUALA LUMPUR, Sept 25 — The increase in debts for Malaysian companies to finance their operations, including capital expenditure and pay directors’ remunerations, is much slower than their peers in Asean countries, says Standard & Poor’s Ratings Services (S&P).

Its Asia-Pacific corporate ratings director, Xavier Jean, said aggregate debt almost tripled for companies in the Philippines between 2008 and the first quarter of 2014 and it nearly doubled for those in Singapore and Thailand.

“The debt in Malaysia has actually grew less rapidly which is about 30 per cent between 2009 and first quarter 2014,” he said at a luncheon with reporters here today.

S&P’s Asean Top Companies series of reports published recently noted that the funding strategies and financial risk profiles of the Malaysian companies were very diverse.

About 30 per cent of 24 companies reviewed have substantially high debt, Jean said, adding that, 50 others have conservative balance sheets with moderate to low debt and the rest tended to be in the middle.

“The business risk profiles of these companies, on the converse, are fairly homogenous.

“Most of them are large, established companies with dominant and sustainable market positions. Companies operating in higher risk sector, such as airlines, have somewhat weaker business risk profiles,” he said.

Jean expected the management teams of of the 24 companies to likely maintain high dividend payouts on the back of slowing revenue in line with other companies in Asean and sustain capital expenditure.

Among the companies under S&P’s review include AirAsia, Bumi Armada Bhd, DiGi.Com Bhd, Gamuda Bhd, Genting Malaysia Bhd, IOI Corp Bhd, Kuala Lumpur Kepong Bhd, Malaysia Airports Bhd, Petronas Dagangan Bhd and Tenaga Nasional Bhd. — Bernama