The GLCT Programme was launched on 29 July 2005 to drive large scale transformation of GLCs through a programme management approach, with the participation of 20 GLCs (also known as the G20) controlled by five Government-Linked Investment Companies (GLIC). Khazanah was the Secretariat of the 10-year programme, which was completed in 2015.
GLCs today are stronger institutions with well-managed balance sheets and greater regional and international presence. Nevertheless, GLCs continue to face new challenges, such as:
There is a need for GLCs to remain vigilant, continue to aim for greater competitiveness and even reinvent themselves in the run-up towards 2020 and beyond. This realisation complemented the findings of a previous strategic review of the GLCT Programme, where many GLIC and G20 Chairmen and CEOs felt that the network effect created by the GLCT Programme should continue, post-programme. This resulted in the idea of creating a Successor Entity (SE) to the GLCT Programme, to achieve this objective. During the final meeting in August 2015, Putrajaya Committee on GLC High Performance (PCG) endorsed Telekom Malaysia (TM) to be the first chair of the SE to the GLCT Programme, with broad level objectives to:
TM established and organised GLC forums in 2016, which was actively participated by G20 and Khazanah.
The GLCT Programme implemented from 2004 to 2015 had three underlying principles, one of which is the National Development Agenda. The Bumiputera Agenda is part of this (Figure 1), where the G20 implemented various initiatives towards nation building.
Following the launch of the Bumiputera Economic Empowerment Agenda in 2015, PCG established the Bumiputera Empowerment Agenda (BEA) to continue with the nation building initiatives.
With the graduation of the GLCs from the GLCT programme in July 2015, Khazanah was mandated by the Government to continue its role as the Secretariat of the BEA Programme until 2020.
In executing the intention and to facilitate effective programme management, the implementation of the BEA programme was planned over three (3) phases. Figure 2 below illustrates the aspirations, expected outcomes and level of engagement required during each phase of the programme.
The first phase included establishment of policies and getting the programme started in the first two years of the programme. Under this phase, specific KPIs were set out and imposed where the various initiatives were successfully implemented by the GLICs and G20. With the BEA programme now in Phase 2, the main focus is to strengthen and deepen the initiatives to provide the impact to the targeted stakeholders and the Bumiputera community.
Realising the need to enhance the programme further, a holistic approach was developed and four key levers were identified in order to quantum leap the BEA and ensure better delivery of the outcomes and the intended impact by 2020.
Lever 1: BEA Mandate Chart
The Mandate Chart (Figure 3) was developed as the overarching guide to the focus areas and the intended outcomes for the targeted stakeholders. The chart is also to promote common understanding, clarity and consistency of the programme.
Lever 2: Robust and Intense Governance
The BEA governance is structured such that the programme is given serious commitment, rigour and intensity. Robust and intense governance, which include the White Room sessions (one-on-one, closed door sessions between the Government and the GLICs & G20 leaderships) and regular reporting to the Majlis Ekonomi Bumiputera (MEB) chaired by the YAB Prime Minister to assure commitments and delivery of the intended outcomes of the programme.
Lever 3: BEA Plans to 2020
The BEA Plans to 2020 are being developed and outlined as future guide and direction for the GLICs and G20 as such that it needs to create impact by 2020. Such ambitious plans require new shifts, new thinking and game-changing initiatives (GCIs) to elevate Bumiputera into a higher level. GLICs and G20 are also encouraged to embark on collective and collaborative initiatives that can provide complementary advantage for the companies and also for the various stakeholders.
Lever 4: Orchestrated Engagements
In order to garner support and advocacy from various stakeholders, BEA engagements need to be orchestrated, paced and sequenced to ensure increasing understanding and commitments towards institutionalization of BEA. Leadership-led key engagements via multiple platforms are also key to strengthen and reinforce BEA messaging to the various key stakeholders.
The overall BEA programme showed encouraging results (Figure 4) with GLICs and G20 delivering KPIs above 90.0% in 2014 and 2015.
For 2016, GLICs and G20 activities for the Bumiputera community under the BEA KPI and non-KPI initiatives are targeted to value approximately RM42.5 billion (Figure 5). Lower value of initiatives for 2016 was planned in view of the challenging business environment. Nonetheless, GLICs and G20 are expected to repeat the overall performance as in 2015. Figure 6 illustrates some of the key commitments and achievements by GLICs and G20.
At the company level, Khazanah has supported the BEA through initiatives like Yayasan Amir Trust Schools, Yayasan Khazanah Scholarships, SL1M and other contributions via Yayasan Hasanah and its collaborative partners. In 2015, 32 new trust schools were rolled out with the beneficiaries being almost 80% Bumiputera. Through Yayasan Khazanah, at least 75% out of the total scholarship awarded went to for Bumiputera students.
Since its introduction, Khazanah has been a strong supporter of the SL1M programme. For 2015 and 2016, Khazanah had trained 5,160 graduates with expenditure of RM89 million benefiting many Bumiputera graduates.
As the Secretariat of the BEA, Khazanah will continue to work with the GLICs and G20 to identify new and innovative initiatives while undertaking the mandate to manage the programme and deliver the intended outcomes. .
Chief Executive Officer,
Unit Peneraju Agenda Bumiputera (TERAJU)
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