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Monday March 19, 2:44 PMFACTBOX-Malaysia's state-linked firms at a glanceKUALA LUMPUR, March 19 (Reuters) - The Kuala Lumpur Stock Exchange lists 50 government-linked companies, known as GLCs, which are engaged in strategic sectors of finance, plantations, communications, energy and construction.They have a total market value of about $91 billion, or around 34 percent of the total market capitalisation. Following are the country's 20 largest state-linked firms based on current market value, based on Reuters data. NAME
MARKET CAP (USD) Tenaga
Nasional Bhd 14.0 bln Malayan Banking Bhd
13.8 bln Telekom Malaysia Bhd
9.7 bln MISC Bhd
9.5 bln Bumiputra-Commerce Bhd 8.7 bln Sime
Darby Bhd 5.6 bln Petronas Gas Bhd
5.0 bln PLUS Expressways Bhd
4.2 bln Golden Hope Plantations Bhd
2.6 bln Malaysian Airlines System Bhd
2.0 bln Petronas Dagangan Bhd 1.6 bln
Kumpulan Guthrie Bhd 1.5 bln UMW Holdings
Bhd 1.4 bln UEM World Bhd
1.3 bln Highlands & Lowlands Bhd
1.0 bln Proton Holdings Bhd 1.0 bln
Affin Holdings Bhd 0.8 bln Malaysia
Airports Bhd 0.76 bln POS Malaysia Bhd
0.67 bln Time dotCom Bhd
0.58 bln
- Listed GLCs employed about 340,000 workers in 2005, accounting for 3 percent of the nation's workforce. - All the listed GLCs practise a preferential hiring policy for ethnic Malays and indigenous groups known collectively as "Bumiputras" or "sons of the soil". - Data from the GLCs show that 81 percent of professional executives and 76 percent of senior managers are Bumiputras. - State-linked companies are the main beneficiaries of Malaysia's five-year development plans. A HISTORY OF UNDER-PERFORMING - Underperformance is a recurring theme among GLCs. From 1991 to 2005, the return on equity generated by GLCs lagged the market's benchmark Kuala Lumpur Composite Index (KLCI) by an average of 4 percent. - The Asian financial crisis of 1997-98 had a critical impact on GLCs. Employee productivity collapsed, falling much more than the drop of 48 percent registered by companies overall in the KLCI index. This implied that GLCs were less prepared to face the crisis due to a rigid employee base, state investment arm Khazanah Nasional has said. - In 2005, the listed GLCs contributed 7 percent of gross domestic product, dipping from 8.5 percent recorded in 2000. REFORMS - In 2005, the government launched a 10-year drive to reform GLCs, calling for firms to be restructured, new CEOs to be hired and state Khazanah Nasional to be revamped. - Some GLCs embarked on successful comprehensive turnaround plans: state carrier Malaysia Airlines has climbed back into profit after launching a turnaround plan in February 2006. - But car maker Proton continues to make losses despite launching a recovery plan in 2006. The government is expected soon to sell a stake in the company to a foreign car maker. Suitors include Volkswagen and General Motors . - A growing number of state-linked firms are expanding at home and overseas, led by companies like Telekom Malaysia, banking group Bumiputra-Commerce Holdings and plantation firms Sime Darby, Golden Hope and Kumpulan Guthrie. The last three are merging to form the world's largest listed palm oil company. *Sources Khazanah Nasional data, Reuters data. |
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