Robust GLCs

Petaling Jaya: The net income of 20 selected and core government-linked companies (G20 companies) is expected to breach RM22 billion this year, reflecting that they are on a growth trajectory.


This also means that they are contributing significantly to the country's economy, while advancing further towards regionalisation and championship ambition, Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar said.

Azman said for financial year 2010, the G20 companies had posted strong earnings with net income growth of 49 per cent year-on-year to RM17.3 billion. This is expected to grow further to RM22.1 billion this year.

"I think this is a reasonable forecast although Khazanah has disposed of its stake in Pos Malaysia Bhd. Yes, we have announced the disposal of Pos Malaysia's stake but the transaction has not been executed.

"So, we think this is a reasonable forecast unless there are global economic changes," he told repor-ters on the sidelines of a media briefing on the upcoming three-day GLC Open Day, here yesterday.

Prime Minister Datuk Seri Najib Razak will officiate at the launch of the Open Day on Friday, which will involve five government-linked investment companies (GLICs) and 18 GLCs.

Azman noted that the GLC Transformation Programme, which began in 2004, has achieved many significant milestones, including stronger fundamentals as reflected by their resilience in weathering the 2008/2009 global financial crisis.

He said the G20's total shareholder return showed a compounded annual return of 16.2 per cent from May 14 2004 to June 3 2011, outperforming non-G20 FBM KLCI companies by 1.8 per cent.

As of June 3 this year, market capitalisation of the G20 firms more than doubled to RM355 billion since the start of the programme.

For non-financial G20 companies, Azman said operating cash flow increased to RM24.9 billion in FY2010 from RM17.1 billion in the previous year.

Non-financial G20 firms' debt-to-equity ratio improved to 32 per cent in FY2010 from 42 per cent in FY2009, reflecting the robust free cashflow generated over the last 12 months.

Azman also said 74 per cent of G20's headline key performance indicators were met in FY2010, up from 64 per cent in FY2009.

"The G20 firms are on a growth trajectory, contributing signficantly to the economy, while advancing further towards regionalisation and championship ambition.

"Three GLCs out of the G20 have already positioned themselves for regional championship. They are Maybank, CIMB and Axiata," he said.

On the GLC Open Day, Azman said the Putrajaya Committee on GLC High Performance, in which Khazanah is a secretariat, is organising it to increase public awareness on the unique roles played by GLICs and GLCs. It is also to highlight their contribution towards the development of the local economy.

The event coincides with the seventh year of the 10-year GLC Transformation Programme.

Azman said the Open Day's theme of "Nation-Building, Touching Lives" reflects the GLCs' transformation journey and contribution to society, especially since they are responsible for delivering public goods and services.

The journey of the GLICs and GLCs will be reflected through an exhibition of five clusters.

The Open Day also offers public forums, chaired by heads of GLCs, to discuss current issues.

Visitors will be able to listen to GLC captains at the "Spot Light Corner", as well as watch prominent personalities, non-governmental organisations, entrepreneurs and social activists, discuss wide-ranging issues from the new corporate DNA for the GLCs to the social media phenomenon and limit of social entrepreneurship.