Putrajaya Committee on GLC High Performance (“PCG”) is pleased to present the GLC Open Day 2011, a three-day event aimed to create awareness and increase the understanding of the public on the unique roles
played by Government-Linked Investment Companies (“GLICs”) and Government-Linked Companies (“GLCs) whilst highlighting their contribution towards the development of the Malaysian economy. The GLC Open Day 2011, which commences from 24th June to 26th June, is participated by five GLICs and 18 GLCs. The timing of this event coincides with the 7th year of the 10-year journey of the GLC Transformation Programme (“the Programme”), in which the companies have emerged from the global financial crisis stronger and on better footing.

The open day is aptly themed “NATION-BUILDING, TOUCHING LIVES” to reflect the transformation journey as well as demonstrating their contribution to society, especially since GLCs are responsible in delivering various public goods and services.

Performance Now
The GLC Transformation Programme has achieved many significant milestones including stronger fundamentals as reflected by GLCs’ resilience in weathering the 2008/2009 global financial crisis.

For FY2010, the G20¹ companies reported strong earnings with net income growth of 49% year-on year to RM17.3 billion, and is expected to grow further to RM22.1 billion in FY2011. The G20 total shareholder return (TSR) generated a compounded annual return of 16.2% from 14 May 2004 (start of the Programme) to 3 June 2011, out-performing non-G20 FBM KLCI by 1.8%. As of 3 June 2011, market capitalisation of the G20 more than doubled to RM355 billion since the start of the Programme.

For non-financial G20, operating cashflow increased to RM24.9 billion in FY2010 from RM17.7 billion in FY2009. FY2010 non-financial G20 firms’ debt-to-equity ratio improved to 32% in FY2010 from 42% in FY2009, reflecting the robust free cashflow generated over the last 12 months. 74% of G20 Headline Key Performance Indicators (“KPIs”) were met in FY2010, an improvement from 64% in FY2009.

The G20 are now on a growth trajectory, contributing significantly to the economy whilst advancing further towards regionalisation and championship ambition. Three GLCs out of the G20 have clearly positioned themselves for regional championship – these three being Maybank, CIMB and Axiata.

Nation-building
The current phase of the Programme coincides with an exciting period in Malaysia’s economic landscape as the nation charges towards Vision 2020, via implementation of the New Economic Model (“NEM”). Towards this end, GLICs and GLCs are playing a significant role in contributing to the success of the two pillars of the NEM, namely the Government Transformation Programme (“GTP”) and the ETP. The NEM itself will impact the very environment that GLCs operate in and moving forward, the role of GLCs will evolve towards enabling the transformational reforms that come with it.

The NEM and the GLCT Programme are aligned as they both support Malaysia’s Vision 2020 goals of becoming a high income nation. Therefore, it is critical for the NEM and the Programme to reinforce each other moving forward. The PCG has identified five important roles for GLCs to support the NEM:

1. Diligently stay the course in executing the 10-year GLCT Programme
2. Relentlessly continue their journey towards becoming regional champions
3. Pursue NEIs in line with NEM
4. Collaborate and co-invest with the non-GLC private sector
5. Focus on core businesses on a level playing field and to progressively divest out of non-core and noncompetitive assets

These five roles provide the GLCT fraternity with a common understanding, language and frame on how to reinforce the NEM. Given the shorter time frame to 2015 (which marks the end of the 10-year Programme) and the more challenging business environment, there is a critical need for GLICs and GLCs to elevate the execution of their five roles in NEM in order to achieve the country’s 2020 aspirations.

Touching lives
The GLICs and GLCs continue to invest and support several national corridor developments such as Northern Corridor Economic Region (“NCER”) and Iskandar Malaysia. They have been actively investing in new economy investments (“NEIs”), forming successful partnerships with the non-GLC private sector and divesting non-core and non-competitive assets. They have also contributed significantly to the development and execution of the National Key Economic Areas (“NKEAs”) and Strategic Reform Initiatives (“SRI”) labs under the Economic Transformation Programme (“ETP”).

On the micro level, GLCs are directly impacting the lives of Malaysians through their products and services such as in the areas of roads and highways, plantations, telecommunications, electricity and power, automotive, financial and banking services, as well as property development. Through their expansion and growth, GLCs provide job opportunities and groom aspiring leaders. The Vendor Development Programme, for example, has been very successful in developing Bumiputera and local entrepreneurs.

The GLC Open Day will reflect the journey of GLICs and GLCs so far through an exhibition of five clusters, which illustrates how GLCs interact with Malaysians on a daily basis, the procurement process and successful partnership models with GLCs as well as how GLCs balance between maximizing profits and sustaining the environment. In addition, the clusters also show the various opportunities in terms of employment and education, as well as the way forward for the transformation programme.

The Open Day also offers public forums, chaired by heads of GLCs, to discuss various current issues. Visitors will get the chance to listen to the GLC captains at the “Spot Light Corner” as well as prominent personalities, NGOs, entrepreneurs and social activists, discussing wide-ranging issues from the new corporate DNA for the GLCs, to the social media phenomenon, to the limit of social entrepreneurship. There will also be a myriad of exciting activities for the family including treasure hunt, colouring competition and e-Peraduan for all ages with attractive prizes to be won.

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