KUALA LUMPUR: Malaysia’s 20 government-linked companies (GLCs) market capitalisation tripled from RM140b in May 2004 to RM435bil as at end October 2014, says Khazanah Nasional Bhd.
The sovereign fund said on Tuesday the 20 GLCs (G20) net profit grew at a compounded annual growth rate of 11.1% from FY2004 to FY2013.
“As a result of this strong financial performance, G20 have been able to return RM93bil in dividends and RM57bil in taxes from FY2004 to FY2013, which have directly and indirectly benefitted the Malaysian public,” Khazanah said.
The statement was released after the 27th Putrajaya Committee on GLC High Performance (PCG27) meeting, which was chaired by Datuk Seri Mohd Najib Tun Abdul Razak.
The Prime Minister called on all Government-Linked Investment Companies (GLICs) and GLCs to step up their effort to ensure that they graduate from the GLC Transformation Programme with “distinction” in 2015.
Next year will mark the 10th and final year of the programme, which was launched in July 2005 to transform GLCs into high performing entities, with the target of having several emerge as regional champions by 2015.
At the meeting, Najib stressed that having champions or iconic companies will help grow the country’s gross national income and propel Malaysia towards its 2020 objectives.
Khazanah also said the GLICs and G20 had been executing on their Bumiputera Empowerment Agenda (BEA) key performance indicators (KPIs) and progress was reported to him at the PCG27 meeting.
“This remains a very important initiative to professionalise and operationalise the country’s larger Bumiputera Agenda in a market-friendly, merit-based and transparent manner in order to promote inclusivity and equitability for the long term stability and growth of the country. Overall, the GLICs and G20 are on track to achieve their 2014 BEA KPIs,” it said.
The programme was announced on May 14, 2004 and officially launched on July 29, 2005.
The Putrajaya Committee on GLC High Performance was formed in January 2005 as a steering committee for the programme and drives the transformation of GLCs into high-performing entities.
The GLICs are the Employees Provident Fund, Khazanah Nasional, Lembaga Tabung Angkatan Tentera, Lembaga Tabung Haji and Permodalan Nasional Bhd.
This list originally comprised 20 GLCs but it has been reduced to 17 GLCs due to various mergers, demergers and other corporate exercises over the years.
The GLC members comprise of Affin Holdings Bhd
, Axiata Group Bhd, BIMB Holdings Bhd, Boustead Holdings Bhd, Chemical Company of Malaysia Bhd, CIMB Group Bhd and Malayan Banking Bhd.
The others are Malaysia Airports Holdings Bhd, Malaysian Airline System Bhd, Malaysian Building Society Bhd, Malaysian Resources Corporation Bhd, Sime Darby Bhd, Telekom Malaysia Bhd, Tenaga Nasional Bhd, TH Plantations Bhd, UEM Group Bhd and UMW Holdings Bhd.
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