All Eyes on the Seven Influential Glics
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Headline All eyes on the seven influential GLICs MediaTitle Focus Malaysia Date 04 Aug 2018 Language English Circulation 16,405 Readership 49,215 Section News Page No 10 ArticleSize 746 cm² Journalist N/A PR Value RM 38,830 All eyes on the seven influential GLICs Ministry of Finance Inc Bank Pembagunan Bhd, Agrobank | (MOF Inc) Bhd, FELCRA Bhd, Keretapi Tanah Melayu Bhd, Malaysia Debt Ventures MoF Inc is arguably the single most Bhd, Danainfra Nasional Bhd, Mass powerful GLIC within the Malaysian Rapid Transit Corp Sdn Bhd (MRT), government machinery. It reports MyHSR Corp Sdn Bhd, Prasarana directly to Minister of Finance (MoF) Malaysia Bhd and Syarikat Lim Guan Eng and also controls Perumahan Negara Bhd, among another GLIC, Khazanah Nasional others. Bhd. Suria Strategic Energy Via a golden share, MoF Inc Resources Sdn Bhd (SSER), a com- exerts influence over Permodalan pany recently embroiled in a RM9.3 Nasional Bhd (PNB), another GLIC bil scandal for gas pipeline projects which comes under Yayasan in Sarawak, is also under MOF Inc. Pelaburan Bumiputera (YPB). However, there is talk that the gov- As a GLIC established under the ernment is mulling abolishing MoF MoF Inc Act 1957, it is tasked with Inc altogether. If this happens, the overseeing strategic investment into fate of 68 companies under it will be companies which require high initial in limbo. investment costs and face high market barriers. Through these Kumpulan Wang investments, MoF Inc is expected to I Persaraan (KWAP) stimulate economic growth and attract further foreign investments KWAP is one of the top three GLICs into sectors such as biotechnology, in the country in terms of fund size. It information technology, utilities and was thrust into the spotlight over its communications. RM4 bil loan to SRC International So far, MoF Inc has 68 compa- Sdn Bhd, a subsidiary of 1MDB. nies under its belt. They include Incorporated in 2007, KWAP is Petroliam Nasional Bhd (Petronas), Malaysia's second-largest retire- 1 Malaysia Development Bhd (1 MDB), ment fund and manages RM125 bil in Headline All eyes on the seven influential GLICs MediaTitle Focus Malaysia Date 04 Aug 2018 Language English Circulation 16,405 Readership 49,215 Section News Page No 10 ArticleSize 746 cm² Journalist N/A PR Value RM 38,830 assets. The fund was established Setia Bhd, UMW Holdings Bhd, nies and stocks in China such as under the Retirement Fund Act 2007, Chemical Company of Malaysia Bhd Alibaba. replacing the repealed Pensions (CCM),I&P Group Sdn Bhd, Interestingly, Khazanah was Trust Fund Act 1991. Goodyear Malaysia Bhd and Unilever established by Mahathir in 1994. Its The difference between KWAP (Malaysia) Holdings Sdn Bhd. portfolio of listed companies and EPF is that KWAP only manages include some of Malaysia's biggest contributions from permanent gov- Lembaga Tabung Haji names such as Telekom Malaysia ernment staff with pensionable Bhd, Tenaga Nasional Bhd, Malaysia status and those in service with regu- I (LTH) Airports Holdings Bhd, CIMB Group latory bodies and local authorities. Founded in 1963, Lembaga Tabung Holdings Bhd, UEM Sunrise Bhd, Contributing employers to the fund Haji (LTH) is the pilgrims fund board, IHH Healthcare Bhd and UEM are, among others, Majlis Amanah formerly known as Lembaga Urusan Group Bhd. In addition to holding Rakyat (MARA), Dewan Bandaraya dan Tabung Haji (LUTH). It provides controlling stakes in these listed Kuala Lumpur (DBKL), Lembaga savings services to Muslims who are companies, it also wholly owns Kemajuan Tanah Persekutuan planning pilgrimages to Mecca. It Malaysia Airlines Bhd, and has a (Felda), Lembaga Pemasaran engages in the in vestment of accu- 51% share in highway company Pertanian Malaysia (Fama), local gov- mulated funds and monitoring of PLUS Malaysia Bhd. ernment universities and govern- investment functions through Recently, it was highlighted that ment hospitals. Shariah-compliant vehicles. Khazanah had suffered large losses The retirement fund is led by The pilgrim fund is the parent in several investments and business board members appointed by the company of TH Properties Sdn Bhd, ventures in the past. This includes a Finance Minister. The secretary-gen- TH Hotel & Residence Sdn Bhd, eral of the Ministry of Finance Datuk BIMB Holdings Bhd.TH Plantations failed RM80 million investment into Seri Dr Ismail Bakar is chairman Bhd and Theta Edge Bhd. TH proper- an online lingerie outfit overseas. It while its CEO is Datuk Wan ties Sdn Bhd has seven residential was also said to have suffered a Kamaruzaman Wan Ahmad. projects in Sydney and one in Perth write-off of RM3 bil in a Swiss bank through a 50:50joint venture with following the collapse of Lehman Permodalan Nasional local developers. Brothers in 2008. I Bhd (PNB) Tabung Haji was among the big- gest zakat contributors in Malaysia Employees Provident PNB, controlled by Yayasan in 2016, with a total payment of Fund (EPF) Pelaburan Bumiputera (YPB), is tra- RM60.29 mil, an increase of 1.7% ditionally headed by the prime minis- from RM59.26 mil in the previous One of the required documents for ter. On June 28, Prime MinisterTun Dr year. Malaysians when applying for any Mahathir Mohamad assumed the In mid-July, Tan Sri Mohammed financial facilities from the bank is chairmanship of YPB while Tan Sri Dr Nor Md Yusof was appointed chair- the EPF statement. Zeti Aziz, former Bank Negara gover- man with Datuk Seri Zukri Samat as The EPF is probably the biggest nor and a member of the Council of CEO. GLIC in terms of fund size. In 2017, Eminent Persons (CEP), was the total assets of EPF exceeded appointed PNB chairman effective Khazanah Nasional Bhd RM791 bil. It is a social security insti- July. Its group CEO is Datuk Abdul tution formed under the Employees Rahman Ahmad. The nation's first sovereign wealth Provident Fund Act 1991, which PNB was established in 1978 and fund was recently shaken up when its requires employees and their has grown by leaps and bounds since entire board of directors offered to employers to contribute towards then to become the largest fund resign. Their resignations were their retirement savings. management company in the coun- accepted and a five-member board Private and non-pensionable try. PNB's main task is to promote was appointed, headed by chairman public sector employees make up the corporate share ownership among Tun Dr Mahathir Mohamad, who is members of EPF with an annual con- Bumiputera. also prime minister. tribution of RM65.5 bil. As of As the investment vehicle for the Together with PNB and MoF Inc, September 2017, the fund had 13.72 government through YPB, PNB's Khazanah is one of the biggest million members, including7.05 mil- shareholdings in companies are GLICs. Its long-serving former man- lion contributing active members placed in trust funds and sold to unit aging director Tan Sri Azman and 493,229 active employers. The EPF is the controlling share- holders in the form of smaller units, Mokhtar is a savvy fund manager holder of MBSB Bank Bhd and owns giving Bumiputera unitholders expo- and was instrumental ingrowing its significant interest in Malaysian sure to Bursa Malaysia-listed com- assets from RM50.9 bil in 2004 to Resources Corporation Bhd (MRCB). panies. RM157.2 bil in 2017. The value of its It also has significant stake in PNB's total funds amount to over investments hit an all-time high of Telekom Malaysia Bhd, DiGi.com RM255 bil in over 200 companies. RM115.6 bil in 2017, boosted by surg- Bhd, MBM Resources Bhd, IJM Some of its major investee compa- ing stock prices at home and its Corporation Bhd, Public Bank Bhd, nies are Malayan Banking Bhd investments in technology compa- Media Prima Bhd, BIMB Holdings (Maybank), Sime Darby Bhd, SP Headline All eyes on the seven influential GLICs MediaTitle Focus Malaysia Date 04 Aug 2018 Language English Circulation 16,405 Readership 49,215 Section News Page No 10 ArticleSize 746 cm² Journalist N/A PR Value RM 38,830 Media Prima Bhd, BIMB Holdings Bhd, Hong Leong Bank Bhd and Tenaga Nasional Bhd, among others. EPF's chairman is Tan Sri Samsudin Osman while its CEO is Datuk Shahril Ridza Ridzuan. There has been speculation that following the change in government, that its CEO may be leavingto head the vacant top position in Khazanah Nasional Bhd. Lembaga Tabungan Angkatan Tentera (LTAT) Lembaga Tabung Angkatan Tentera (LTAT) is a pension fund for the Armed Forces. The fund also pro- vides a savings scheme for officers in the Armed Forces and mobilised members of the Volunteer Forces. The fund was established in August 1972 by an Act of Parliament, Tabung Angkatan Tentera Act. As required by the Act, LTAT invests more than 70% of its funds in trustee investments and less than 30% in non-trustee investments. Among the listed companies it con- trols are Boustead Holdings Bhd and Aff in Bank Bhd. The fund is tradition- ally underthe purview of the Defence Minister. Underthe superannuation scheme, the government as the employer of Armed Forces person- nel will contribute 15% of their monthly salary whereas serving members of other ranks are required to contribute 10%. However, partici- pation is voluntary for officers, with a minimum contribution of RM25 and a maximum of RM2.000 per month, with no contribution from the gov- ernment. For the f inancial year ended Dec 31,2017, LTAT posted a net prof it of RM667.1mii, a 12.1% increase from FY16. LTAT's success has largely been due to the able stewardship of its CEO Tan Sri Lodin Wok Kamaruddin. Headline All eyes on the seven influential GLICs MediaTitle Focus Malaysia Date 04 Aug 2018 Language English Circulation 16,405 Readership 49,215 Section News Page No 10 ArticleSize 746 cm² Journalist N/A PR Value RM 38,830 WHO CONTROLS THE GLICs HP9IBMH Prime Minister & Cabinet + Minister of Finance Minister in the PM's Department Minister of Defence (Islamic Affairs) 4 Lembaga TABUNG HAJI Tabung KW/1P Angkatan Tentera 1 Malaysia Development Berhad (1MDB) - Petronas Golden - Prasarana Malaysia Berhad Share YPB - Dana Infra Nasional Berhad Pengurusan Danaharta Nasional Berhad Yayasan Pelaburan Bumiputera - My HSR Corp Berhad - Mass Rapid Transit Corp Sdn Bhd and others.