Government-linked companies (GLCs) in Malaysia need to be tightened up to meet their transformation programme objectives by 2015. Launched in 2004, the 10-year Transformation programme, is meant to raise GLCs’ performance to be on par if not better than their Singapore’s counterpart, Temasek. Although few Malaysian GLCs are already on the global platform, more GLCs should become global champions by 2015, if we want to become a developed country by 2020.
This was released in the Ministry of Finance's 2009/2010 Economic Report recently. The report went on to state that the roles of change agents, including senior management, the boards, government-linked investment companies(GLICs), the government and the Putrajaya Committe on Performance, need to keep pace with a rapidly changing environment. CEOs and senior management of GLCs should consider expanding their business presence overseas as the current business environment in Malaysia is getting saturated. GLCs , which are better equip with capital, infrastructures and government backing are able to withstand few years of early establishment problems before reaping profits. The most important variables to consider are; foreign business cultures, proper networkings, viable business models, reasonable payback periods and good business ethics. In foreign business environment, GLCs have to compete not only with domestic established companies, but also with giant multinationals. Excellent track records and good business ethics are vital in securing tenders and contracts from foreign government and companies. Obviously, the treatment would not be the same as doing business in Malaysia where wide corridors and generous business opportunities are given to GLCs.
To date, 33 GLCs are listed on Bursa Malaysia, which accounts for only 4.0 per cent of the total listed companies have a market capitalisation of RM235.5 billion or 49 per cent of total capitalisation and employ more than 300,000 people.
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