BISMILLAHIR RAHMANIR RAHIM

ASSALAMUALAIKUM WARAHMATULLAHI WABARAKATUH and good afternoon

yab dato’ sri mohd najib tun abdul razak

deputy prime minister and minister of finance

Yb tan sri nor mohamed yakcop

second minister of finance

Y.bhg tan sri azman mokhtar

managing director, khazanah nasional

heads of G.L.C’s and g.l.i.c’s

distinguished guests

ladies and gentlemen

1.         alhamdulillah, i am pleased to once again address all the heads of the nation’s G.L.C’s and g.l.i.c’s. in my view, this session is indeed important, as it gives me the opportunity to review the progress made under the ongoing G.L.C. transformation program.

2.         given that the global economy is facing one of its worst crises in modern history, i believe it is apt that we remind ourselves of the role and RESPONSIBILITIES that G.L.C’s and g.l.i.c’s must partake in order to bring continued development to the nation.

ladies and gentlemen

3.         all of you will be aware that when we launched the G.L.C. Transformation Program Five years ago, Malaysia was nearing the half-way point of a thirty-year development journey towards Vision 2020. In assessing our progress at that time, it was indeed apparent that we still had a long way to go.

4.         one of my concerns was the fact that the 1997-1998 Asian Financial Crisis had weakened our domestic economy. alhamdulillah, with the many measures and safeguards that the government had put in place to thwart the effects of the crisis, we had emerged from that turbulent episode stronger than before. however, there was no denying the fact that the disruption of those years risked derailing our trajectory towards achieving our national aspirations.

5.         As I searched for a way forward, I was struck by two points. The first was the disproportionate impact G.L.C’s had on the Malaysian economy despite their role as providers of mission-critical services, cornerstones of strategic sectors, and key capital market constituents. The second was that G.L.C’s were consistently underperforming the broader Malaysian market both financially and operationally, for over 15 years. in my view, this historical trend of underperformance was unacceptable when viewed against the backdrop of a fast-paced and ever-changing global economy.

6.         thus, In 2005, I launched the G.L.C. Transformation Program to revitalize these critical engines of growth. under this program, We aspired to create, by 2015, the conditions under which all G.L.C’s would be performing – at the very least – at par with their competitors and several regional, if not global champions.

ladies and gentlemen

7.         there is no denying that The journey this past five years has ever been easy. More often than not, we found ourselves hampered by complacency and inertia; by outdated mindsets and even older habits; by a fear of change; and, by the enormity of the task before us. in this respect, it can be said that Each G.L.C. had forged alone for so long, that coming together as a community was in itself, a difficult task.

8.         hence, it is with great pride when I say that we did not falter. admittedly, at times We have stumbled and made mistakes. and admittedly, some G.L.C.’s still have substantial work to do, But throughout the campaign, it should be noted that we stayed the course. i am happy to state that through our PERSEVERANCE, We have successfully completed and launched all 10 key initiatives of the G.L.C. Transformation Program.

9.         at present, We are starting to see tangible results, notwithstanding the current economic uncertainty. for example:

1. Many G.L.C’s now have stronger fundamentals to weather the downturn.

2. For the first time in history, G.L.C’s have consistently outperformed the Malaysian stock market index since the launch of the program. We have improved the governance of our G.L.C’s by enhancing transparency and accountability.

3. We have upgraded our talent development programs in G.L.C’s, with an increasing focus on human capital development. this is not only relevant to the development of G.L.C’s, but also for the broader Malaysian economy.


4. We have seen successful turnaround programs for some companies that were once thought to be impossible.

10.        of course, None of these achievements would have been possible without the commitment and leadership of all those gathered here today. thus, let me take this opportunity to thank the concerted efforts of our second finance minister, the members of the p.c.g., the G.L.I.C. leadership, G.L.C. Boards and executives, the G.L.C. Transformation Secretariat, G.L.C. employees and all stakeholders, for achieving the objectives that have been set forth in this program. I am honored to have been here at the start of this journey of change, and I thank each of you for having walked this path with me.

ladies and gentlemen

11.        let me remind all of you that This journey is, however, only halfway through. As the next leg unfolds, it is again vital that we, as a community, stay the course.

12.        The global economic crisis that has rocked North America and Europe has begun tightening its grip on Asia. Growth is slowing; trade is weakening; consumer confidence is faltering. In the coming weeks and months, it must be acknowledged that our economy will not be left untouched.

13.        In the face of these daunting odds, we need to hold fast to our conviction that there is nothing that we, as a nation, cannot achieve as long as we remain united. So it was when our forefathers won our independence; so it was when we emerged from the Asian financial crisis scarred, but nonetheless stronger. and, So will it be today.

14.        although The crisis has undoubtedly created new challenges for the G.L.C. Transformation Program, we should not lose sight of the fact that it may also yield significant opportunities. As such, the question we should be asking ourselves is not “how will we survive?”, but “how can we make the most of the current situation?”.

15.        in this regard, i would like to remind all of you that the objectives and aspirations that we set out to accomplish with this G.L.C. Transformation program have not changed. If at all, they remain a clarion call to hold fast to our convictions to develop robust companies that are industry leaders, not just in Malaysia, but globally. it is important that we retain faith in our ability to survive and eventually prosper.

16.        as before, It is my sincere wish to harness this public-private partnerships to its fullest potential. hence, the government is fully committed to ensure that the corporate sector, with G.L.C’s leading the way, play an increasing role in delivering benefits to all stakeholders.

ladies and gentlemen

17.        there is little doubt that the times ahead will be trying. I take heart, however, from the resilience of all of you that have gathered here because I have seen what you and your companies are capable of. in this regard, I have seen that real change is possible, even within short periods of time.

18.        the year 2020 is on the horizon, and there is much work to do if we are to accomplish the national mission. Similarly, the G.L.C. Transformation program calls for the development of regional champions and high performing G.L.C’s that are on par with global peers.

19.        i understand that to make this happen We may need to dig deep within ourselves once again, particularly during these troubled times. but, dig deep we must. i ask you, ladies and gentlemen of g.l.i.c’s and g.l.c’s, to stay the course with respect to this g.l.c. transformation program, and to ensure that we accomplish the objectives that have been set.