Bahasa Malaysia

Strategy - Approach

Our role as an active strategic investor now involves driving and creating greater shareholder and strategic value for the nation.

The new mandate that we have been given calls for professional and prudent management of the GLCs. The transformation of the GLCs calls for a coordinated effort between Khazanah Nasional and the GLCs. In this regard, we have instituted clear terms of engagement for both parties.

Khazanah strives to ensure strong and capable leadership within each GLC, people who are driven by business strategies that are workable and a passion for value creation at the Board and management levels. Khazanah will ensure that adequate key systems and controls are in place and with that, influence the evolvement of the industry structures by optimising the competitive and regulatory landscape.

With the broader aspects of the strategy in place, macro-managing the GLCs means that we will be monitoring their performance from a distance and empowering each GLC to execute their own tasks as they know best.

5 PILLAR TERMS OF ENGAGEMENT FRAMEWORK WITH GLCs
Khazanah Nasional As Active-manager, GLCs As Frontline Micro-manager and Executor
Leadership
  • Ensure professional, capable, experienced and appropriate
    • Board of Directors
    • Senior Management team
Strategy
  • Drive high-quality executable business strategy through the Board and management
Systems and Controls
  • Place key systems and controls to underwrite growth and value creation: e.g. Governance, Risk management, Performance Management, Talent management, Procurement, Internal Audit, investor relations
Industry structure
  • Drive or influence how industry structures evolve through optimal competitive environment and regulatory structure
  • Leverage inter-company synergies
monitor and empower
  • Once the above in place, do not micro-manage
  • Continuous monitoring of progress
  • Empower management to carry out its job