GLCs should remain vigilant amid new challenges

KUALA LUMPUR: There is a need for government-linked companies (GLCs) to remain vigilant, continue to aim for greater competitiveness and reinvent themselves in the run-up towards 2020 and beyond to overcome new challenges ahead, said Khazanah Nasional Bhd.

In The Khazanah Report 2016 themed, “Building True Value” released yesterday, the strategic investment fund said among the new challenges faced by the GLCs currently include operating in a tougher external environment and facing intense competition.

“The GLCs also have to deal with heightened pace of globalisation, liberalisation and regulation, despite being stronger institutions today with wellmanaged balance sheets and greater regional and international presence,” it said.

Moving forward, the report said Khazanah would continue to work with government-linked investment companies and the Group of Twenty (G20) to identify new and innovative initiatives.

Meanwhile, on its indirect 51%-owned PLUS Malaysia Bhd, Khazanah noted that finding the most suitable custodian of a nationally strategic infrastructure asset, and forging a partnership that would benefit the people ultimately, were among the challenges faced by the company.

However, it said with the Employees Provident Fund (EPF) on board with a 49% stake in PLUS, Khazanah was able to structure a transaction that ultimately benefited public interests yet made good business sense.

On the privatisation of PLUS in 2011, it said from a stakeholder’s perspective, the people had benefited from a moderated rate of toll increases with the freeze on toll increases effective for five years following the deal. – Bernama