Top 17 GLCs score all-time high net income of RM20bil last year

By Star Online: Business
30 May 2012

KUALA LUMPUR: The top 17 government-linked companies (GLCs) recorded an all-time high net income in 2011 of RM20.1bil from only RM9bil in 2004 reflecting a growth of 18.2% per annum, according to the Putrajaya Committee on GLC High Performance (PCG).

The 17 corporations are part of the so-called G20, an earlier selection of 20 GLCs that make up the PCG, which are now down to 17 due to mergers, demergers and other corporate restructurings.

Among the highlights of G20 recent performances were G20 total shareholders' return outperformed the rest of non-G20 FBM KLCI by 0.8% per annum from May 14, 2004 to May 18 this year, growing at 13.7% per annum compared with non-G20 FBM KLCI's 12.9% per annum.

G20 market capitalisation more than doubled to RM319bil from RM140bil over the same period and delivered a return on equity of 11.8% in 2011, up from 10.6% in 2010.

“GLC tranformation programme continues on the path of success, with GLCs on a strong growth trajectory and becoming fundamentally stronger companies continue to make strong progress in the eighth year of its 10-year implementation plan.

“This is reflected in the further inroads the GLCs have made in regional markets and their significant contribution to the national economy since the start of the programme,” said PCG in a statement.

In terms of regional expansion, PCG said GLCs had made inroads into regional markets where from 2004 to 2011, G20 foreign sales grew from 26% to 33% and their foreign assets grew from 13% to 26%.

“In addition, the G20 also employ 147,230 employees in 40 different countries with 1,509 branch offices in Asean alone,” it said.

Also, The GLC Transformation Programme has seen the Government-linked investment companies and GLCs successfully played a key role in contributing to the Malaysian economy and the G20 returned RM62bil in dividends and RM40bn in taxes from 2004 to 2011 and GLCs had invested RM92bil domestically since the start of the programme.

Going forward towards 2015, the statement said the road ahead for GLCs would be challenging as the Government has intensified the transformation effort with the recent introduction of various transformation programmes.

“The GLCs' active involvements in these initiatives are critical as the fraternity forms a significant part of the country's economy. There have also been new expectations on GLCs to lead in areas related to nation building such as supplying talents and investing in human capital, driving innovation and promoting equitable distribution.” it said.

The 17 firms that formed the G20 are Affin Holdings Bhd, Axiata Group Bhd, BIMB Holdings Bhd, Boustead Holdings Bhd, CIMB Group Holdings Bhd, Chemical Company of Malaysia Bhd, Malayan Banking Bhd, Malaysian Building Society Bhd, Malaysian Resources Corp Bhd,Malaysia Airlines, Malaysia Airports Holdings Bhd, Sime Darby Bhd,Telekom Malaysia Bhd, Tenaga Nasional Bhd, TH Plantations Bhd,UEM Group Bhd and UMW Holdings Bhd.

[Source]