Bahasa Malaysia

Frequently Asked Questions

General

Investments

GLCs


Iskandar Malaysia (IM)


GLC Transformation Programme (GLCT)


Malaysian Directors Academy (MINDA)


General

What does Khazanah Nasional do?

Khazanah Nasional is the investment holding fund of the Government of Malaysia where we are empowered as the Government's strategic investor. As trustees to the nation's financial assets, our main objective is to promote economic growth and make strategic investments on behalf of the Government which would contribute towards nation building in the long run.

Who owns Khazanah Nasional?

Save and except for one (1) share owned by the Federal Land Commissioner, all of the equity of Khazanah Nasional is owned by MOF (Inc), which is in turn owned by the Ministry of Finance. In essence Khazanah is a wholly owned entity of the Malaysian Government.

How is Khazanah Nasional legally incorporated?

Khazanah Nasional was incorporated on 3 September, 1993 as a public limited company under the Companies Act of 1965 and is therefore governed by the Companies Act of 1965.

Who sits on the Board of Khazanah Nasional?

Khazanah Nasional has a nine-member Board comprising representatives from the public and private sectors.

Dato’ Sri Mohd Najib bin Tun Hj Abdul Razak, the Honourable Prime Minister of Malaysia, is the Chairman of the Board.

The Board of Directors is assisted in the discharge of its duties by an Executive Committee and an Audit Committee established by the Board.

The management team is headed by the Managing Director, Tan Sri Dato' Azman bin Hj Mokhtar .

Investments

As Khazanah Nasional is the Government's investment fund, can I get Khazanah Nasional to invest in my venture?

Khazanah Nasional's mandate as a driving force in investing in selected strategic sectors and markets for Malaysia requires it to play the role of an active strategic investor.

As an active and dynamic investment holding company, we aim to manage our investment portfolio to realise their long term potential, while making new investments that we believe will be future winners. As such, any investment considered must fit our strategic parameters. We welcome queries on potential opportunities via our e-mail address.

Which sectors are Khazanah Nasional actively investing in?

Currently, our investments are within the finance, media and communications, utilities, information technology and transportation industries.

Which companies are related to Khazanah Nasional?

For a detailed list of our existing investments, please refer to our Investment section

Khazanah Nasional has a whole stable of companies within its group. Can I approach Khazanah Nasional to assist me introduce my product or service to its companies?

As a shareholder, Khazanah Nasional does not get involved directly in the management of our investee companies. Any queries or proposals relating to the provision of products and/or services to these companies should be forwarded to the respective management of these companies directly.

GLCs

What are Government-Linked Companies (GLCs)?

GLCs are defined as companies that have a primary commercial objective and in which the Malaysian Government has a direct controlling stake. Controlling stake refers to the Government’s ability (not just percentage ownership) to appoint BOD members, senior management, make major decisions (e.g contract awards, strategy, restructuring and financing, acquisitions and divestments etc. ) for GLCs either directly or through GLICs.

What are Government-Linked Investment Companies (GLICs)?

GLICs are defined as Federal Government linked investment companies that allocate some or all of their funds to GLC investments. Defined by the influence of the Federal Government in: appointing/approving Board members and senior management, and having these individuals report directly to the Government, as well as, in providing funds for operations and/or guaranteeing capital (and some income) placed by unit holders. The definition currently includes seven GLICs: EPF, Khazanah, KWAP, LTAT, LTH, MKD and PNB.

Which companies are categorized as GLCs?

The category of GLCs comprises companies that are controlled by the respective State Governments and State-level agencies. This includes companies that the Government of Malaysia controls directly as its agencies such as Khazanah Nasional, MOF Inc., KWSP and Bank Negara Malaysia. Includes companies where GLCs themselves have a controlling stake, i.e. subsidiaries and affiliates of GLCs.

Iskandar Malaysia (IM)

What is vision and core purpose of IM?

IM’s vision is for 'A World Class Sustainable Conurbation of International Standing'. In line with this, its key objective is 'to create a sustainable conurbation which has taken into consideration the needs of all stakeholders involved, either directly or indirectly, and will enhance the quality of community's life without compromising the local environment and its ecology'. With this clear and defined purpose, IM's central vision of providing a livable and sustainable conurbation will first and always be to provide a development that accommodates the quality of life desired by the current and future citizens of IM.

IM Facts & Figures
  • IM covers a land size of 221,634.1 ha.
  • IM is estimated to contain 1.35 million people or 43% of Johor's population of 3.17 million. Some 66% of the population is of working age. One third of the population is estimated at below 15 years old.
  • GDP - Total IM GDP is about USD 20 billion in 2005, 60% of Johor's total GDP of USD 33.4 billion. Current per capita GDP for IM is about USD 14,790 which is higher than the Johor per capita GDP of USD 10,757 but half of Singapore's (about USD 30,000).
  • Services and Manufacturing sectors are the two main pillars of IM's economy, but Services dominate by contributing about USD 10 billion in IM.
  • Within the Services sector, Wholesale and Retail trade contributes 42.2%, Tourism and Hospitality (16.8%), Professional and Business (14.6%), Transport and Related (12.7%), Medical and Educational (6.7%), Financial (6.6%).
  • GDP/Capita in Purchasing Power Parity USD9,265 in 2005
  • 30-year GDP growth between 7% and 8%
  • South Johor accounts for 60% of Johor State's GDP
  • Johor's growth rate is higher than Malaysia's national average diversified economy with emphasis on manufacturing & services
  • Low inflation rate (less than 3.5%)
  • Unemployment rate less than 3 to 4 %
  • Total regional population 800 million

Where can I go to get more information on IM?

Please visit the IM website at http://www.idr.com.my

GLC Transformation Programme

What is the Government-Linked Companies (GLC) Transformation Programme?

The transformation of GLCs into high-performing entities is critical for the future prosperity of Malaysia. To facilitate this transformation, the Putrajaya Committee on GLC High Performance (PCG) was set up. http://www.pcg.gov.my

Its principal mandate is to design and implement comprehensive national policies and guidelines to transform GLCs into high performing entities and establish the institutional framework to program-manage and subsequently to oversee the execution of these policies and guidelines.

The Government's efforts at improving performance in companies under its control or stewardship will have a positive demonstrative effect on the rest of the corporate sector. Undertaking such a program should result in a sustainable lift to the current trajectory of GLC performance, improving Malaysia's ability to achieve Vision 2020.

(Definition of Vision 2020 - By the year 2020, Malaysia must be a comprehensively developed country - developed economically, developed politically, developed socially and culturally, progressive and caring.)

Why is the GLC Transformation Programme so critical to the development of Malaysia?

GLCs and their controlling shareholders, GLICs (Government Linked Investment Companies), constitute a significant part of the economic structure of the nation. GLCs employ an estimated 5% of the national workforce and account for approximately 36% and 54% respectively of the market capitalisation of Bursa Malaysia and the benchmark Kuala Lumpur Composite Index. Even with active divestment and privatisation, GLCs remain the main service providers to the nation in key strategic utilities and services including electricity, telecommunications, postal services, airlines, airports, public transport, water and sewerage, banking and financial services.

What are the key principles for GLC Transformation?

There are 3 key principles to the GLC Transformation including:

  1. National development foundation - the GLC Transformation Programme is a subset of the broader national development strategies that include the principles of growth with equity, improving total factor productivity, the development of human capital, and the development of the Bumiputera community.

  2. Performance focus - the underlying rationale of the GLC Transformation Programme is to create economic and shareholder value through improved performance at GLCs. Hence, specific policy guidelines and initiatives will be driven by principles of performance and meritocracy within the broader national development focus described above.

  3. Governance, shareholder value and stakeholder management - the GLC Transformation Programme, while being led by the Government, fully observes the rights and governance of shareholders and other stakeholders. Hence, the policy measures to be implemented come in the form of policy guidelines rather than rules that GLCs are expected to implement through their Board of Directors in line with good governance. In addition, and within the context prescribed above, GLCs are expected to engage in managing other valid stakeholder interests, in particular those of employees, customers, suppliers and the Government itself as regulators and policy makers.

How does the GLC Transformation Programme affect each stakeholder?

Based on one methodology to estimate the potential for value creation, it is estimated that high performing GLCs, could in the next 5-7 years, contribute a potential upside of RM250 to 300 billion in market capitalisation. Further, as an illustration, enhancements in procurement practices and systems alone is estimated to result in annual bottom-line impact of over RM11billion for the G-15. (top 15 GLCs). Beyond the economic and financial benefits to shareholders, GLCs will benefit all stakeholders and contribute to Malaysia's future wellbeing in other important ways. For example:

  • Higher service and quality levels for customers;
  • Better job prospects in more dynamic GLCs;
  • Increased transparency favouring higher value-for-money suppliers, with reduced levels of leakages and inefficiencies;
  • Continued development of the Bumiputera community - with better skilled and more competitive Bumiputeras

Where can I go to seek clarification on the GLCT Programme?

The Transformation Management Office (TMO), located within the Secretariat to PCG, will be the central point to answer questions and provide assistance regarding the implementation of the programme. TMO can be contacted at:

Malaysian Directors Academy

What is the purpose of MINDA?

One of the main policy thrusts of the GLC Transformation (“GLCT”) Programme is the need to upgrade the effectiveness of GLC Boards through learning which led to the establishment of the Malaysian Directors Academy (MINDA).

MINDA aims to address Board performance by equipping Directors of GLCs with world class knowledge, skills and mindset to perform to a consistently high standard. To be an effective Director, performance is critical. This includes understanding the boundaries between Board and management, active problem solving with both the Board and key management on strategic issues, whilst leveraging networks and managing multiple stakeholders in a proactive manner.

Can non-GLC Directors participate in MINDA programmes?

MINDA’s initial focus will be on designing and deploying flagship programmes tailored specifically for GLC Directors. Once this has been achieved, MINDA will consider expanding and deploying programmes for other Directors.

Has MINDA identified its partner(s)?

For its Flagship Programmes, MINDA is partnering with IMD – The International Institute for Management Development based in Lausanne, Switzerland. IMD is the leading provider of executive education and was ranked 2nd in the world and 1st amongst European business schools for the overall quality of its programmes in the 2006 Financial Times rankings. IMD was also ranked 1st worldwide for its MBA programme in the 2005 Wall Street Journal rankings. MINDA is also in discussions currently with other local and international institutions to identify potential areas for collaboration.

How does MINDA aim to build local capacity and capability?

This will be done through numerous means including:

  • Partnering with local institutions in deploying MINDA’s Flagship Programmes with the aim of collaboration and transferring knowledge;

  • Collaborating on local and regional research and case study development as means for knowledge sharing and personal development;

  • Developing customised programmes that address local and regional development needs; and

  • Proposing “Centers of Excellence” among local institutions to reduce duplication, encourage specialisation and increase scalability

Isn’t MINDA similar to other executive learning institutions in Malaysia?

MINDA’s target group are GLC Directors and not Management. The programmes to be deployed are tailored specifically for Directors covering areas such as performance and leadership requirements, strategy and organizational development, global trends and challenges, etc. from a Director’s perspective. MINDA is also looking at working with local institutions to optimize programmes deployed in Malaysia and would seek to avoid duplicity.