GLCs on track to 'graduate' from transformation programme, says Najib

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KUALA LUMPUR (Apr 23): Prime Minister Datuk Seri Najib Razak has declared that government-linked companies (GLCs) are on track to successfully "graduate" from the 10-year GLC Transformation Programme this year.

Among the GLCs included are Telekom Malaysia Bhd, Tenaga Nasional Bhd, CIMB Group Holdings Bhd, Axiata Group Bhd, IHH Healthcare Bhd, Malaysia Airports Holdings Bhd and UEM Sunrise Bhd.

The transformation programme, expected to end in August this year, was initated by Khazanah Nasional Bhd in 2005 to transform GLCs into high-performing entities critical for the nation's growth.

"I have been informed that to mark the occasion, a GLC Open Day will be held for the public in early August," he said in his keynote speech at the Invest Malaysia 2015 conference today.

Going forward, Najib said Malaysia can expect GLCs to continue being a major engine of economic growth for the nation.

He said over the last decade, total shareholders’ return of G20 — the group of 20 GLCs that comprises some of Malaysia's largest companies — grew 12.6% per annum.

In terms of market capitalisation, the group has increased 3.2 times to RM431 billion, while net profit grew 10.2% per annum.

He added that G20 has invested RM154 billion into the Malaysian economy in the past 10 years and have drawn 34% of their revenue from abroad in the same period with operations in at least 42 countries.

"These achievements have benefited all stakeholders, with G20 returning RM108 billion in dividends and RM64 billion in taxes since 2004," said Najib.

Najib also dispelled criticisms of his administration, which appeared to be in response to his harshest critic — former prime minister Tun Mahathir Mohamad — who claimed to be alone in voicing his concerns.

"There has been some talk lately in Malaysia about how it can be lonely telling the truth. Well, I can tell you that I don't feel lonely standing here in front of you all today!

"And when so many respected international bodies, individuals and institutions have confirmed their belief in Malaysia's success, and have honoured us by rating us so highly, I don't feel lonely at all. In fact, I feel [myself] in very good company!" he said.