Transformed GLCs see strong growth, mkt cap doubles

KUALA LUMPUR (Dec 13): Eighteen of the largest government linked
companies (GLCs) under the GLC Transformation Programme have recorded
significant progress and are on more stronger positions now than when the programme started in May 2004.

Deputy Finance Minister Datuk Donald Lim Seng Chai said on Tuesday
these companies were not badly affected by the 2008/2009 global
financial crisis and their key performances have since remained strong.

As of Nov 25, the market capitalisation of these 18 GLCs doubled to
RM319 billion from the start of the programme in 2004, while their
collective
Total Shareholder Return (TSR) have grown by 13.6 per cent from May 14, 2004.

"The aggregate income of the 18 GLCs shot up 80 per cent to RM17.3
billion in the 2010 financial year compared with RM9.6 billion in the
2004 financial year.

"The GLCs achieved 72 per cent of the Key Performance Index targets
in the 2010 financial year, an increase from the 64 per cent achievement
in 2009," he said when answering a question from Senator Doris Brodie
who wanted to know the current status of GLCs that have undergone the
transformation programme.

Lim said intensive efforts meanwhile have been taken by GLCS that had
recorded less satisfactory financial results to counter the issues they
had been
facing.

The initiatives include collaborating with competing companies in the
private sector, while looking into new growth sectors and replanning
their
marketing segment, he said.

The problems faced by these GLCs originated from several structural
and sectoral issues outside the control of these companies such as the
rise in oil
price, reduced supply of raw materials and the price mechanisms involving their products and services, he explained.

"Several GLCs had seen lower performances including MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), TENAGA NASIONAL BHD [] (TNB) and PROTON HOLDINGS BHD [] (Proton).

"Considering that these companies are listed, their respective boards
of directors are responsible for monitoring the performances of the
management of the GLCs and taking the subsequent course of action when
the KPI set by the board is not met with," he said. - Bernama