1 / 10

Khazanah as an SWF and industrial policy Friday 6 June 2014

Khazanah as an SWF and industrial policy Friday 6 June 2014. Khazanah’s House Chart sets out our scope of activities. Source: Khazanah analysis. ILLUSTRATIVE. The political economy continues to swing between state and market. “Political Economy Balance” – State vs Markets.

Download Presentation

Khazanah as an SWF and industrial policy Friday 6 June 2014

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Khazanah as an SWF and industrial policy Friday 6 June 2014

  2. Khazanah’s House Chart sets out our scope of activities Source: Khazanah analysis

  3. ILLUSTRATIVE The political economy continues to swing between state and market “Political Economy Balance” – State vs Markets (Not-to-scale) Source: Khazanah analysis; “In Search of Gold and the Golden Mean” speech at Invest Malaysia April 2011

  4. Steady growth in portfolio value with acceptable level of risk Note 1: Based on unaudited 2013 accounts Note 2: RAV: Market value of all equities, securities and cash held. Where no market price is available, a conservative estimate of value is used. Note 3: NWA: RAV less Total Liabilities and adjusted to measure value created Note 4: Compounded Annual Growth Rate Source: Khazanah analysis

  5. Whilst still largely domestic focused, we continue to gradually expand our regional exposure RAV by domicile of companies RAV by geographic exposure1 Note 1: An estimate of attributable value according to the countries where investee companies have operations Source: Khazanah analysis

  6. SOEs have outperformed the rest of the market, underpinned by fundamental improvements We are here 2004 2005 2006 2007 2010 2015 Phase 1: Mobilisation, Diagnosis & Planning Phase 2: Generate Momentum Phase 3: Tangible Results Phase 4: Full National Benefit 5-10 years onwards 12-17 months 14 months 2-5 years 5/2004 1/2005 PCG formed 29th July 2005 Transformation Manual Launch 2004 Measures • KPI and PLCs • Performance contracts • Board composition reform • Revamp of Khazanah • GLC leadership changes • Policy Guidelines • Ten 2005/6 Initiatives Targeted outcomes: • Maintain momentum • Tangible & sustained benefits across GLCs • Visible benefits to all stakeholders, e.g., customers, vendors, employees, etc. • Large scale strategic and financial changes made • Material changes to Boards • Several regional champions • Most GLCs performing at par with competitors • Diagnosis of GLCs conducted • Determination of Policy Principles • Initial 2004 Initiatives launched • 2005/6 Initiatives implemented • Full roll-out in place • Key policies endorsed and executed upon • Early fruits of sustainable improvements Source: Bloomberg; companies’ financial reports; analyst consensus estimates for 2013; PCG analysis; Khazanah analysis

  7. SOEs have been restructured via transformative transactions … • Investment into Lippo Bank and subsequently Bank Niaga in Indonesia to support CIMB’s regionalisation strategy • Today, the group has over 1,000 branches and 40,000 employees across 17 countries • Demerger of TM and Axiata in 2008 to allow both companies to focus on core growth strategies • TM’s HSBB offering has reached more than 665,000 customers across Malaysia whilst Axiata has 215m subscribers across Asia • Merger of UEM Land and Sunrise to form Malaysia’s largest property developer by market capitalisation • Synergistic transaction to leverage UEM Land’s landbank and Sunrise’s expertise in luxury property development • Consolidation of regional healthcare players to form the world’s second largest private healthcare group • Recently listed in both KL and Singapore to overwhelming response • RM23bn privatization of PLUS by UEM Group and EPF • National Fund Management – transfer of a mature cash-generating asset to new owners who can better harness its strengths

  8. … with many now on course towards regional championship A number of Malaysian companies are poised for regional championship: …in line with our roles in the NEM: Source: BCG: “New Global Challengers” and “Companies Piloting a Soaring Region”; PCG

  9. Khazanah has successfully delivered on milestones in Iskandar Malaysia projects and other NEIs, with much more work in the pipeline Source: Iskandar Regional Development Authority (“IRDA”); Khazanah analysis

  10. Support of NationalTransformation Initiatives Human Capital At Khazanah, we create value for the wider stakeholder economy KnowledgeDevelopment CorporateResponsibility Ideas & Thought Leadership • Performance-Focus, Transformation and Execution • Khazanah as Macro-Manager, GLCs as Micro-Managers • Sovereign Development Fund, not just SWF • Sensible Finance, Real Finance, and Islamic Finance • Cities and Economic Density • Complementary Advantage and Collaboration • Regional Champions • Malaysia Inc. v3.0 – Rebalancing and Crowding-in • Talent and Culture • Institutionalize Board Composition of Khazanah-Linked Companies Source: Khazanah analysis

More Related