Thursday, February 09, 2017

Proton - Less than 50% - Government no more in control of companies?

GLC - what does that really mean? In a company, you would be able to control that company only if you have more than 50% of the shares - Then, and only then can you decide on what the company do or does not do, even who the Directors and CEO are...


Government of Malaysia controls directly through Khazanah, MoF Inc{Ministry of Finance Incorporated], KWAP[Kumpulan Wang Persaraan /Government Pension Fund], and BNM[Bank Negara Malaysia...

Alternatively, according to the government it also includes the 7 GLICs(Government-Linked Investment Companies) which includes Employees Provident Fund (EPF), Khazanah Nasional Bhd (Khazanah), Kumpulan Wang Amanah Pencen(KWAP), Lembaga Tabung Angkatan Tentera (LTAT), Lembaga Tabung Haji (LTH), Menteri Kewangan Diperbadankan (MKD), and Permodalan Nasional Bhd (PNB). [Source:- Putrajaya Committee GLC High Performace Website 

But, as mentioned earlier, to control any company, one needs to own more that 50% of the Company...Well, the only information of the amount that government owns was given in the 2004 data...after that, we do not know. How many of these 'GLCs' do the Malaysian government still own...The 2005 data provides percentage of government shareholdings - after that could not find anymore percentage ownership. What is the situation today?

Now the info from Putrajaya Committee GLC High Performace Website  [,-12,398], the ones in the list not in bold red, the Malaysian government does not own more that, it is no more in control - just a shareholder?

Latest, we heard that 51% of Proton will be sold of to a Chinese company or some other foreign company...

Companies owned by friends, families and/or cronies are not 'government controlled companies' ...

Some say GLC means the government owns at least 20% - but really this is nonsense. We should just have GCC (Government owned and controlled companies - and that too directly by the government...), and for them, maybe special treatment..


What the other companies that government own shares in?

In 2005, data was revealed by the government - what is the status the government still owns as much? or has been sold off to some foreigners or others?

What are the percentage of government ownership not provided for the other companies like DRB HICOM, MAS, etc..

Name of Gompany [Total Government shareholding (%) as March 2005]

Malayan Banking Bhd (63.5)

Telekom Malaysia Bhd (63.8)

Tenaga Nasional Bhd (73.7)

Malaysia International Shipping Corp Bhd (MISC) (72.1)

Sime Darby Bhd (57.3)

Petronas Gas Bhd (89.8)

PLUS Expressways Bhd (77.0)

Commerce Asset Holdings Bhd (47.9)

Golden Hope Plantations Bhd (78.8)

Malaysian Airline System Bhd (80.8)

Proton Holdings Bhd (68.8)

Petronas Dagangan Bhd (78.0)

Island & Peninsular Bhd (56.3)

UMW Holdings Bhd (58.6)

Kumpulan Guthrie Bhd (82.5)

Affin Holdings Bhd (54.3)

Malaysia Airports Holdings Bhd (77.3)

Bintulu Port Holdings Bhd (71.3)

POS Malaysia & Services Holdings Bhd (35.4)

NCB Holdings Bhd (60.2)

UEM World Bhd (50.8)

Malaysian Industrial Development Finance Bhd (MIDF) (40.1)

Boustead Holdings (71.3)

BIMB Holdings Bhd (67.6)

Chemical Co. of Malaysia Bhd (69.4)

Malaysian Nasional Reinsurance Bhd (69.3)

MNI Holdings Bhd(84.6)

UDA Holdings Bhd (56.7)

Malaysian Resources Corp Bhd (30.6)

Pelangi Bhd (43.2)

Time Engineering Bhd (51.9)

Malaysia Building Society Bhd (79.1)

Faber Group Bhd (41.4)

Formosa Prosonic Industries Bhd (28.5)

Central Industries Corp (38.6)

YA Horng Electronic Malaysia Bhd (29.6)

Hunza Consolidated Bhd (19.1)

D’Nonce Technology Bhd (24.4)

Johan Ceramics Bhd (73.4)
·         ****Shareholding as of March 2005


Foreign stratetic partner for Proton to be selected by first half

PETALING JAYA: DRB-Hicom Bhd aims to complete the selection of a foreign partner for automotive arm Proton Holdings Bhd by the first half of this year.

In a statement yesterday, the group said it is waiting for the submission of bids from potential foreign strategic partners.

“As we have stated previously, the parties have conducted their own due diligence on Proton over the past weeks. DRB-Hicom is now waiting for the submission of bids from the parties, after which an earnest evaluation of the bids will commence,” said DRB-Hicom group managing director Datuk Seri Syed Faisal Albar.

It was reported that Chinese automaker Geely Automobile Holdings Ltd is the front runner, ahead of French carmakers PSA Group and Renault SA.

Proton has been a drag for DRB-Hicom since the acquisition of the car maker in 2012. DRB-Hicom incurred a widened net loss of RM478.94 million for six months ended Sept 30, 2016.

In its search for the right foreign strategic partner for Proton, DRB-Hicom said it will evaluate three key criteria – strategic, operational and cultural fit.

A strategic fit will enable both parties to derive tangible benefits from the range of technology and products available, complementing each other’s needs in their own markets, and achieving economies of scale.

“In evaluating the potential partners, DRB-Hicom will insist that the Proton badge and its technology will be expanded into Asean markets first and global arena subsequently,” Syed Faisal said.

An operational fit will ensure that both parties complement each other’s strengths and existing company structures blend well to achieve seamless operation while a cultural fit would ensure a successful union.

As part of the evaluation, he said, the group will also assess the intention of the potential partners in utilising the current “home-grown” vendor network.

“This is a very significant element in our evaluation, as DRB-Hicom who also own subsidiaries serving Proton as vendors, would avoid for these ‘home-grown’ network to be diluted substantially,” he explained.

Syed Faisal said the partnership would also benefit the foreign partner, as it would be able to offer Proton’s range of affordable cars namely Persona, Saga, Preve and Iriz to specific markets across the globe.

He said the foreign partner would also be able to immediately increase their production capacity via Proton’s Tanjung Malim plant in Proton City, which has a low utilisation rate presently.

Syed Faisal stressed that the search for a foreign partner is a critical exercise to ensure the sustainability of Proton and is confident that Proton will enhance its brand equity with the right partner.

“We have stated before that we will maintain a significant equity in Proton, and this has not changed. The foreign strategic partner search is not about shirking our national responsibility but about enhancing Proton as a bona-fide carmaker, and eventually putting them, and Malaysia, on the global map,” he added. - The Sun Daily, 8/2/2017

Geely shares soar to record on report it’s buying Proton’s Malaysia car assembly

A successful Proton bid will add 150,000 units of annual capacity to Geely’s output and give the Chinese carmaker access to Asean’s 10-member market
PUBLISHED : Friday, 03 February, 2017, 6:43pm
UPDATED : Friday, 03 February, 2017, 10:50pm

Summer Zhen
Summer Zhen

Geely, based in the Zhejiang provincial capital of Hangzhou, is a leading contender to buy a 51 per cent controlling stake in Malaysia’s largest carmaker Proton Holdings Bhd., according to a Thursday report in The Star newspaper, which cited unidentified sources. -

15. Who are the GLCs? What is the definition of GLCs?

A: Government-Linked Companies (GLCs) are defined as companies that have a primary commercial objective and in which the Malaysian Government has a direct controlling stake.

Controlling stake refers to the Government's ability (not just percentage ownership) to appoint Board members, senior management, and/or make major decisions (e.g. contract awards, strategy, restructuring and financing, acquisitions and divestments etc.) for GLCs, either directly or through GLICs.

Includes GLCs, where the Government of Malaysia controls directly through Khazanah, MoF Inc, KWAP, and BNM; or where GLICs and/or other federal government linked agencies collectively have a controlling stake.

Includes companies where GLCs themselves have a controlling stake, i.e. subsidiaries and affiliates of GLCs.

16. Who are the GLICs?

A: Government-Linked Investment Companies (GLICs) are defined as Federal Government linked investment companies that allocate some or all of their funds to GLC investments.

Defined by the influence of the Federal Government in: appointing/approving Board members and senior management, and having these individuals report directly to the Government, as well as in providing funds for operations and/or guaranteeing capital (and some income) placed by unit holders.

This definition currently includes seven GLICs: Employees Provident Fund (EPF), Khazanah Nasional Bhd (Khazanah), Kumpulan Wang Amanah Pencen (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), Lembaga Tabung Haji (LTH), Menteri Kewangan Diperbadankan (MKD), Permodalan Nasional Bhd (PNB).  Source:- Putrajaya Committee Putrajaya for GLC High Performance Websites

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