Top 20 GLCs’ market cap up RM121b from 2004

PUTRAJAYA: The country’s top 20 government-linked companies’ (GLCs) market capitalisation had risen by more than 83% or RM121 billion as of Nov 30 since the introduction of a comprehensive transformation plan in 2004 with strong emphasis on achievement of key performance indicators (KPI).

“During the same period, total shareholder returns of the top 20 GLCs recorded 24.4% compound annual growth rate (CAGR) outperforming the Kuala Lumpur Composite Index (KLCI) by 3.3%,” said Prime Minister Datuk Seri Abdullah Ahmad Badawi in his speech at the Forbes Asia Fabulous 50 and Businessman of the Year Award ceremony here yesterday.

Abdullah (left) with Forbes executive editor and Forbes Asia Tim Ferguson at the Q&A session.

“I am particularly proud of our efforts in transforming GLCs. We introduced KPIs, strengthened corporate governance and instituted many other wide-ranging reforms. Where needed, we brought in new leadership which helped to infuse new energy and new ideas,” he said.

Abdullah said the seeds for excellence had been sown, with the likes of CIMB Investment Bank, which is set to become a regional giant while Malaysia Airlines had made a “dramatic comeback” with ambition to become a five-star airline. Abdullah also cited Sime Darby Bhd as another conglomerate set to embark on a journey of becoming a global giant.

IOI Corp chairman Tan Sri Lee Shin Cheng receiving the Forbes Asia Fabulous 50 award from International Trade and Industries Minister Datuk Seri Rafidah Aziz in Putrajaya.

At the ceremony, Minister of International Trade and Industries Datuk Seri Rafidah Aziz presented the awards to the winners of the third annual Forbes Asia Fabulous 50 list, in which IOI Corporation Bhd emerged as the only Malaysian company in the list.

IOI Corp chairman Tan Sri Lee Shin Cheng received the award from Rafidah. IOI Corp recorded its highest earnings ever with a net profit of RM1.48 billion for the financial year ended June 30, 2007, buoyed by record earnings from the palm oil and property business segments.

India’s ICICI Bank managing director and chief executive officer KV Kamath claimed the honour of being the Businessman of the Year.

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