GLCs and government-linked transformation companies are playing significant roles in the country's government transformation and economic transformation programmes. G20 is a selection of 20 largest government-linked companies (GLCs) where currently there are 19 companies in the list due to mergers, demergers and other corporate restructuring exercise.
Khazanah Nasional Berhad reported that the G20 under the government-linked companies (GLCs) transformation programme, which is at the final stage now, are on a strong growth trajectory where key financial indicators for 2010 have actually exceeded the highs recorded in 2007.G20 companies net income is expected to grow to RM22.1 bil this year from RM17.3bil last year. In 2010, G20 net income grew 49% year-on-year (yoy) to RM17.3bil. G20's total shareholders return generated a compounded annual return of 16.4% from May 14, 2004 (start of the GLCs transformation programme), outperforming non-G20 FBM KLCI by 1.9%. As at April 1 this year, its market capitalisation has more than doubled to RM353bil since 2004.
G20 delivered return on equity of 10.5% in 2010, up from 7.7% in 2009 while economic profit increased to RM765mil last year compared to an economic loss of RM647mil in 2009.
The GLCs transformation programme that started in 2004 is a ten-year programme where it is now at phase four, the final phase of the programme.
The final phase of the GLCs transformation programme coincides with an exciting period in the Malaysian economic landscape as we charge towards Vision 2020.