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 today, 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 Twenty (G20) to identify new and innovative initiatives.
Meanwhile, on its indirect 51 per cent-owned PLUS Malaysia Bhd, Khazanah noted that 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 (EPF) on board with a 49 per cent 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 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.
"Secondly, securing the deal on a good public platform has led to a positive outcome not only in commercial terms but for the people -- the ownership by EPF-- meant that its share of tolls collected would effectively accrue back to the people as EPF contributors.
"Finally, it is also crucial to identify the most efficient financial instrument and strategy to bring about a mutually beneficial conclusion to the transaction," it added.
PLUS is the biggest highway concessionaire in Malaysia with a total of 986.5 kilometres of roads under its purview. -- BERNAMA