Minister of Finance Incorporated: Ownership and Control of Corporate Malaysia

by Edmund Terence Gomez, Thirshalar Padmanabhan, Norfaryanti Kamaruddin

This is a study of Malaysia’s new political economy, with a focus on ownership and control of the corporate sector. It offers a pioneering assessment of government-linked investment companies (GLICs), a type of state-owned institution that has long prevailed in the corporate sector but has not been analysed. Malaysia’s history of government-business ties is unique, while the nature of the nexuses between the state and the corporate sector has undergone major transitions. Corporate power has shifted from the hands of foreign firms to the state to the ruling party, and well-connected businessmen, and back to the state. Corporate wealth is now heavily situated in the leading publicly-listed government-linked companies (GLCs), controlled through block shareholdings by a mere seven GLICs under the jurisdiction of the Minister of Finance. To indicate why these GLICs are important actors in Corporate Malaysia, this study provides a deep assessment of their ownership and control of Bursa Malaysia’s top 100 publicly-listed enterprises. 

390 pages, Kindle Edition

Published July 24, 2017

Reviews

[Cassandra Chung · Rating 5 out of 5]

This book details the nexus between the Government of Malaysia and corporate Malaysia, its development through the years and the reasons behind it.

I picked up this book for a variety of reasons; having practiced in a corporate firm and struggled to understand why companies and subsidiaries were structured in a certain way or why they decided to deal with their shares in a particular manner, I thought this book would help shed some light on my confusion. Given how business and politics in Malaysia are so intertwined, I also thought it was about time I read up on the specifics of their nexus.

I found the subject-matter of this book particularly challenging because my natural inclination is disinterest when it comes to the world of finance and business structures. However, I managed to push through this book because not only is it incredibly well-structured and methodical, but the language used is very simple to understand. I also appreciated the various tables, visual tabulations and flow-charts which greatly eased my understanding of how shareholdings of Government Linked Investment Companies (GLICs) and their directorships are structured.

Alongside being a well-researched book, I also appreciated that the author doesn't make final, damning moral judgments when analysing the nexus explored in this book. He highlights both the good and bad of the structures that presently exist in our economy. Detailed curriculum-vitae (CV) like information on directors of prominent companies also aided me in coming to my own conclusions on the merits of the the current structures.

I'd recommend this book to anybody interested in business and anybody keen to find out how a big part of our economy is structured. This book is a good place to start, especially if you're like me: not the biggest fan of business structures.

[Izwan Zakaria · Rating 4 out of 5]

Prof Terence Gomez was commissioned by Institute of Debate and Economic Affairs (IDEAS), a think tank that promotes free market and libertarian principles. The book discusses the role of government linked investment companies affecting Malaysia and its economy. You should read it if you’re involved in business, investment or just a curious Malaysian.

[Fairus · Rating 4 out of 5]

The book will give a layperson a good awareness on GLIC and its evolution since Mahathir’s reigning days to the recent PM. Interesting to learn how 7 GLIC companies controlling almost half of the market capitalisation as well as the presence of UMNO and bureaucrats in the directorship. Most importantly how MOF Inc is being used by the gov to steer the economy to their best interests.

[Abbas Zubir · Rating 4 out of 5]

This is a must read for those trying to understand the complexities of Malaysia's GLIC and GLC (the different which I learned only after reading the book). Although, I have to admit, the book is too technical at times, which, I find to be challenging but not too to technical that it is unreadable. For others the book may be an easier read than me.

Although the challenge, I have to say is worth it. This books gave me an insight on my nation economical short comings and gave me a better understanding on how politics can play a role in a nation economy.

[Joshua · Rating 4 out of 5]

An unprecedentedly detailed study on the enormous concentration of power in Malaysia's corporate landscape, in a system where all Government Linked Investment Companies (GLICs) (which through their control of the Government Linked Companies are ultimately linked with at least as many as 70000 companies / up to 40% of Bursa Malaysia's total market capital value) are ultimately answerable to the Minister of Finance.

[Alex Wong · Rating 4 out of 5]

Provides a very interesting insight and history into the corporate structure of firms in Malaysia. Including the history and development of ownership of some of the largest companies in Malaysia. A very good starting point for those interested in knowing a little bit more about large corporations in Malaysia.

[Lawrence · Rating 4 out of 5]

informative pertaining to companies that are linked to goverment of Malaysia

[Mohd Ashraf · Rating 5 out of 5]

Changed my view on Corporate Malaysia

[Ben Leong · Rating 5 out of 5]

Very informative and fun to read. It is a tremendously helpful book to those who are interested in understanding how the corporate world in Malaysia works (albeit the research period stopped in 2013)

[Syaima · Rating 5 out of 5]

satu ilmu untuk memahami bagaimana glc dan glic berfungsi dan apa kaitannya dengan kerajaan.

[Wen Jun Ong · Rating 4 out of 5]

While the writing isn't great, its one of the few books on the development of political economy in Malaysia, through the lens of GLC and GLIC.

[Julkifli Bensali · Rating 5 out of 5]

A good book to know how Government control Corporate Malaysia.

[Yafik Lokman · Rating 4 out of 5]

Essential reading to understand the context of the private sector in Malaysia and how big an influence the Government has.