Khazanah: GLCs must remain vigilant

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 well managed 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 20 to identify new and innovative initiatives.

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

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

PLUS is the biggest highway concessionaire in Malaysia with a total of 986.5km of roads under its purview. — Bernama