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Hot Topics

  • 1. What is Minister of Finance (Incorporated) (MOF Inc.)?

    1. Minister of Finance (Incorporated) [MOF (Inc.)] is a corporate body established under the Minister of Finance (Incorporation) Act 1957.
    2. The act provides the authority for MOF (Inc.) to enter into contracts, acquisitions, purchases, possessions, holdings and maintains tangible and intangible assets.

  • 2. What is the purpose of investments of (MOF (Inc.) companies?

    1. To bridge the market gap where the private sector gives less investment priority, mainly due to huge initial investment costs and high market barriers.
    2. To provide social services to the public such as public transportation and utilities services.
    3. To stimulate economic growth by investing in strategic sectors such as technological research and development.
    4. To attract local and foreign investors to invest in specific areas such as biotechnology, information technology and communication.

  • 3. How many MOF (Inc.) companies are there?

    To date, MOF (Inc.) holds direct majority shareholding in 70 companies as below:

    MOF (Inc.) Majority Shareholding Companies
    # Company
      MAJORITY
    1. 1Malaysia Development Berhad (1MDB)
    2. Amanah Raya Berhad (ARB)
    3. Astronautic Technology (M) Sdn Bhd (ATSB)
    4. Bank Pembangunan Malaysia Berhad
    5. Bank Pertanian Malaysia (Agrobank)
    6. Cradle Fund Sdn Bhd
    7. Cyberview Sdn Bhd
    8. Export-Import Bank of Malaysia Berhad (EXIM Bank)
    9. FELCRA Berhad
    10. Halal Industry Development Corporation Sdn Bhd (HDC)
    11. IJN Holdings Sdn Bhd
    12. Indah Water Konsortium Sdn Bhd (IWK)
    13. Inno Bio Ventures Sdn Bhd (IBV)
    14. Institut Terjemahan dan Buku Malaysia Bhd (ITBM)
    15. Jambatan Kedua Sdn Bhd (JKSB)
    16. JKP Sdn Bhd
    17. Keretapi Tanah Melayu Berhad (KTMB)
    18. Khazanah Nasional Berhad
    19. Kumpulan Modal Perdana Sdn Bhd (KMP)
    20. Malaysia Debt Ventures Berhad (MDV)
    21. Malaysia Digital Economy Corporation Sdn Bhd (MDeC)
    22. Malaysia Kuwaiti Investment Corporation Sdn Bhd (MKIC)
    23. Malaysia Rail Link Sdn Bhd
    24. Malaysian Bioeconomy Development Corporation Sdn Bhd
    25. Malaysian Venture Capital Management Bhd (MAVCAP)
    26. Mass Rapid Transit Corporation Sdn Bhd (MRT)
    27. MIMOS Berhad
    28. MyCreative Ventures Sdn. Bhd.
    29. MyHSR Corporation Sdn Bhd
    30. PBLT Sdn Bhd
    31. Pengurusan Aset Air Berhad (PAAB)
    32. Perbadanan Nasional Berhad (PNS)
    33. Petroliam Nasional Berhad (PETRONAS)
    34. Prasarana Malaysia Berhad
    35. Prokhas Sdn Bhd
    36. Rangkaian Hotel Seri Malaysia Sdn Bhd
    37. Sepang International Circuit Sdn Bhd (SIC)
    38. SIRIM Berhad
    39. Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank)
    40. SRC International Sdn Bhd
    41. Suria Strategic Energy Resources Sdn Bhd
    42. Syarikat Perumahan Negara Bhd (SPNB)
    43. Technology Park Malaysia Corporation Sdn Bhd (TPM)
    44. UDA Holdings Bhd
    45. Mutiara Smart Sdn Bhd
    46. Transit Acquirer Sdn Bhd
      MAJORITI – SPECIAL PURPOSE VEHICLE (SPV)
    47. Malaysia Sukuk Global Bhd
    48. AES Solutions Sdn Bhd
    49. Aset Tanah Nasional Bhd
    50. Assets Global Network Sdn Bhd
    51. DanaInfra Nasional Berhad
    52. GovCo Holdings Berhad
    53. K.L. International Airport Bhd (KLIAB)
    54. Malaysia Development Holding Sdn Bhd
    55. Malaysian Sovereign Sukuk Sdn Bhd
    56. Pembinaan PFI Sdn Bhd
    57. Pengurusan Danaharta Nasional Berhad
    58. Perwaja Terengganu Sdn Bhd
    59. Piramid Pertama Sdn Bhd
    60. Pyrotechnical Managers Holding Sdn Bhd
    61. SDE Solutions Sdn Bhd
    62. Syarikat Jaminan Kredit Perumahan Berhad
    63. Syarikat Jaminan Pembiayaan Perniagaan Berhad
    64. Syarikat Tanah & Harta Sdn Bhd
    65. Turus Pesawat Sdn Bhd
    66. Wakala Global Sukuk Berhad
    67. Actius Terra Global Holdings Sdn Bhd
    68. MKD Aman Makmur Sdn Bhd
    69. South Side Jewel Sdn Bhd
    70. Urusharta Jamaah Sdn Bhd

    Subsidiaries owned by MOF (Inc.) companies such as Khazanah and PETRONAS are also considered MOF (Inc.) companies through indirect ownership.

  • 4. Apart from majority-owned companies, does MOF (Inc.) holds shares in any other companies?

    Yes, MOF (Inc.) holds ordinary shares in the private companies below:

    # Company No. of Units %
    1. Asean Potash Mining Public Co. Ltd 1,673,100 9.61
    2. Danajamin Nasional Bhd 500,000,000 50.00
    3. International Rubber Development Consortium Ltd. (IRCO) 10,656,000 22.22
    4. Permodalan Nasional Bhd (PNB) 1 0.00
    5. Syarikat Perumahan Pegawai Kerajaan Sdn Bhd 35,000,000 30.00

    MOF (Inc.) also holds one Golden Share in the companies below which entitles MOF (Inc.) to certain special rights:

    # Golden Share Company
    1 Aerospace Technology System Corporation Sdn Bhd
    2 Bintulu Port Holdings Bhd
    3 Bintulu Port Sdn Bhd
    4 Boustead Naval Shipyard Sdn Bhd
    5 Commerce Dot Com Sdn Bhd
    6 FGV Holdings Bhd
    7 HICOM Holding Berhad
    8 Johor Port Bhd
    9 Konsortium Pelabuhan Kemaman Sdn Bhd
    10 Kuantan Port Consortium Sdn Bhd
    11 Malaysia Airport (Sepang) Sdn Bhd
    12 Malaysia Airports Holdings Bhd
    13 Malaysia Airports Sdn Bhd
    14 Malaysian Airline System Bhd
    15 Malaysian Maritime Academy Sdn Bhd
    16 MARDEC Bhd
    17 Medical Online Sdn Bhd
    18 MISC Bhd
    19 National Aerospace & Defence Industries Berhad (NADI)
    20 National Feedlot Corporation Sdn Bhd
    21 Northport (Malaysia) Bhd
    22 Padiberas Nasional Bhd (BERNAS)
    23 PDX.Com Sdn. Bhd.
    24 Pelabuhan Tanjung Pelepas Sdn Bhd
    25 Penang Port Sdn Bhd
    26 Pos Malaysia Berhad
    27 Projek Lebuhraya Usahasama Bhd
    28 Sabah Electricity Sdn Bhd
    29 Senai Airport Terminal Services Sdn Bhd
    30 Telekom Malaysia Berhad
    31 Tenaga Nasional Berhad
    32 Westport Malaysia Bhd

  • 5. What are Government-Linked Investment Companies (GLIC)?

    In Malaysia, there are 7 entities referred to as GLICs [including MOF (Inc.)] and they are:

    1. Minister of Finance (Incorporated) [MOF (Inc.)]
    2. Khazanah Nasional Berhad (Khazanah)
    3. Employees Provident Fund (EPF)
    4. Lembaga Tabung Haji (LTH)
    5. Armed Forces Fund Board
    6. Retirement Fund (Incorporated)
    7. Permodalan Nasional Berhad (PNB)

  • 6. What are Government-Linked Companies (GLC)?

    GLCs are defined as companies that have a primary commercial objective and are under the control of a GLIC. A GLIC has control over a GLC when it is the majority shareholder or single largest shareholder and when it has the ability to exercise and influence major decisions such as appointment of board members and senior management and so on. Subsidiaries of such GLCs fall under the purview of the GLCT Programme.

    For more information about GLC, please visit Putrajaya Committee on GLC High Performance website at http://www.pcg.gov.my/

  • 7. How does MOF (Inc.) monitors the performance of its companies?

    MOF (Inc.) monitors the performance of its companies through the Key Performance Indicators reports as well as the Portfolio Reports of which it is a requirement for companies to submit both reports to GIC on a quarterly basis.

  • 8. How does MOF (Inc.) monitor and assess the Board of Directors to ensure the appointed directors contributes to an effective Board?

    In line with the MOF (Inc.) Appointed Board Member Guideline, individual assessment of the Board Members, including the Chairman and collective Board of Directors performance evaluation is to be carried out annually.

  • 9. Are MOF (Inc.) companies obligated to any international policies?

    Yes, MOF (Inc.) companies as state trading enterprise are obligated to Article xvii - General Agreement on Tariffs and Trade 1994 under World Trade Organization (WTO). Other than that, once the Trans-Pacific Partnership Agreement (TPPA) is signed and come into effect, the relevant MOF (Inc.) companies will be obligated to Chapter 17: State Owned Enterprises and Designated Monopolies under the Agreement.

  • 10. To what extent are the MOF (Inc.) companies involved in the Bumiputera Economic Empowerment Agenda?

    The Bumiputera Economic Council was established as the oversight body in the implementation of initiatives under the Bumiputera Economic Empowerment Agenda across ministries and agencies. The Bumiputera Economic Empowerment Unit at the Ministry of Finance, which plays the coordinating role at the ministry level, has underscored six KPI targets to be achieved by selected MOF (Inc.) companies as follows:

    1. Percentage of Bumiputera in the selected MoF (Inc.) company management and professional category;
    2. Percentage of high-skilled Bumiputera personnel in the selected MoF (Inc.) company workforce;
    3. Percentage of procurement values for Bumiputera vendors from the total procurement values of the selected MoF (Inc.) companies;
    4. Percentage of high-value procurement given out to Bumiputera vendors by the selected MoF (Inc.) companies;
    5. MRT carve-out project for Bumiputera vendors; and
    6. KL118 Tower (Warisan Merdeka) carve-out project for Bumiputera vendors.

  • 11. What are the functions of the Sectors under the GIC?

    COMMERCIAL SECTOR

    Investment Portfolio Management

    1. Setting the Key Performance Indicators and scorecards for MOF (Inc.) companies.
    2. To analyse and advise on the company’s Business Plan and strategic corporate matters.
    3. To act as the single point of reference for matters pertaining to MOF (Inc.) companies (such as Parliamentary matters, Cabinets meeting, Economic Council, audits, etc.)
    4. To evaluate proposals from MOF (Inc.) companies on matters which require the shareholder’s approval (dividends, bonus, CEO/MD annual increment, remuneration revision, Board of Directors’ allowances, collective agreement, AGM, EGM, etc.)
    5. To monitor and analyse MOF (Inc.) company’s financial performance and KPI achievements.
    6. To analyse, devise and execute corporate and financial restructuring, divestment or winding up, mergers and acquisitions, rationalisations and consolidations of MOF (Inc.) companies.
    7. To coordinate matters pertaining to Government-Linked Companies (GLC).

    Companies under the purview of the Commercial Sectors includes those under these industries/sectors:

    1. Development Financial Institutions (DFI)
    2. Investment holding companies
    3. Property development
    4. Finance
    5. Commodity and agriculture
    6. Trustee
    7. Social
    8. Energy
    9. Logistics
    STRATEGIC SECTOR

    Investment Portfolio Management

    1. Setting the Key Performance Indicators and scorecards for MOF (Inc.) companies.
    2. To analyse and advise on the company’s Business Plan and strategic corporate matters.
    3. To act as the single point of reference for matters pertaining to MOF (Inc.) companies (such as Parliamentary matters, Cabinets meeting, Economic Council, audits, etc.)
    4. To evaluate proposals from MOF (Inc.) companies on matters which require the shareholder’s approval (dividends, bonus, CEO/MD annual increment, remuneration revision, Board of Directors’ allowances, collective agreement, AGM, EGM, etc.)
    5. To monitor and analyse MOF (Inc.) company’s financial performance and KPI achievements.
    6. To analyse, devise and execute corporate and financial restructuring, divestment or winding up, mergers and acquisitions, rationalisations and consolidations of MOF (Inc.) companies.

    Companies under the purview of the Strategic Sectors includes those under these industries/sectors:

    1. Transportation
    2. Technology
    3. Infrastructure
    4. Utilities
    5. Communication
    6. Ports
    7. Biotechnology
    8. Information Technology
    CORPORATE GOVERNANCE SECTOR

    Policy Management And Administration

    1. To draft, coordinate and manage matters pertaining to Government investment policies and MOF (Inc.) companies’ policies.
    2. To coordinate and monitor KPI performance of MOF (Inc.) companies.
    3. To coordinate, manage and monitor matters pertaining to the management and administration of MOF (Inc.) e.g. budget, procurement, audit, etc.
    4. To participate in drafting of international policies in relations to Government investments and Government Companies.
    5. To negotiate and monitor the compliance of international agreements in relations to Government investments.
    6. To implement and coordinate matters pertaining to the Government’s accrual accounting in relations to Government investments data.
    7. Secretariat to the Akaun Amanah Bencana.
    8. To draft and review the Treasury Circular LB1.1 - Bumiputera Controlled Public Listed Companies (BCPLC).
    9. To coordinate and monitor the implementation of the Bumiputera Economic Empowerment Agenda.
    10. To coordinate and monitor corporate governance and integrity matters in relations to MOF (Inc.) companies.
    11. To coordinate audit responses pertaining to MOF (Inc.) companies.
    12. To administer development programmes for Board of Directors and GIC officers.

    Investment Portfolio Management

    1. Setting the Key Performance Indicators and scorecards for MOF (Inc.) companies.
    2. To analyse and advise on the company’s Business Plan and strategic corporate matters.
    3. To coordinate, monitor and produce Quarterly Performance Report of MOF (Inc.) companies.
    4. To coordinate and produce the Annual Portfolio Report on all MOF (Inc.) companies.
    5. To act as the single point of reference for matters pertaining to MOF (Inc.) companies (such as Parliamentary matters, Cabinet meeting, Economic Council, audits, etc.)
    6. To evaluate proposals from MOF (Inc.) companies on matters which require the shareholder’s approval (dividends, bonus, CEO/MD annual increment, remuneration revision, Board of Directors’ allowances, collective agreement, AGM, EGM, etc.)
    7. To monitor and analyse MOF (Inc.) company’s financial performance and KPI achievements.
    8. To analyse, devise and execute corporate and financial restructuring, divestment or winding up, mergers and acquisitions, rationalisations and consolidations of MOF (Inc.) companies.

    Companies under the purview of the Corporate Governance Sectors includes those under these industries/sectors:

    1. Venture capitals