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Learning for Sri Lanka on SOE Reforms – Malaysia’s Khazanah Nasional Berhad

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Continued from last Saturday

Board composition reforms. National Development – focusing on national development goals such as creating jobs and economic multipliers. Supporting government policy formation and adopting a long-term view in catalysing social progress in Malaysia to deliver high social impact in communities.

Good Governance –took a holistic and multipronged approach to measure how public institutions conduct and manage public resources.

2. National Support

A degree of national consensus is vital with all relevant stakeholder groups involved and powered by political will. The reform process was carried out over 10 years from 2005 onwards where the reform of Khazanah started under the 4th Prime Minister of Malaysia, the GLC Transformation (GLCT) Programme under the 5th Prime Minister and continued under the 6th Prime Minister.

3. Communications, transparency, public accountability

Transparency and consistent periodic reporting are vital to the success of the programme. KPIs were announced publicly with regular public updates, with internal KPIs being identical to external KPIs. This was followed by consistent and relevant stakeholder engagement across multiple categories.

4. Active, competent, and empowered Holding Company

Khazanah was revamped as an active and strategic SDF (Sovereign Development Fund). Khazanah was also tasked to come up with an overarching programme for other funds from 2005 to 2015. This programme was known as the GLC Transformation Program (GLCT) with Khazanah acting as its Secretariat.

5. A robust Programme Management approach over 10 to 15 years

The GLCT Programme was carried out for 10 years with a careful designed implementation structure. It consisted of 22,981 man days of programme management and 29 meetings were chaired by the Prime Minister to review progress over the 10-year period. It is imperative to stay the course since the prize of seeing it through and the price of not doing so is large. However, it must be ensured that it’s done correctly.

6. Talent and Leadership

Right leadership is critical. Therefore, the Chief Executive Officer. the Board and the Senior Management should be selected under specified criteria to appoint individuals based on their capacity and knowledge to deliver in their role. This should also be followed by a robust selection process.

7. Transformation Acupuncture

Targeted 10 critical areas for improvement in corporate restructuring in key companies. The critical areas included Board governance, CSR, procurement, leadership development, performance based compensation, regulation, operational improvement and finance.

8. Accountability

This included headline KPIs, performance-based compensation, senior management limited to 3-year performance based contracts and a robust appointment process, emulating a carrot and stick approach.

9. Getting key sectors right in terms of the policy mix

It is important to identify the critical sectors such as electricity, telecom, banks, aviation, infrastructure, etc. that play a vital role in the economy. Planning the sector strategy, regulation, pricing, social policy, etc. for the selected sectors instead of reforming all the sectors will also divert resources to effective and efficient use.

10. Using the levers of ownership, financing and controls

Sorting between principally commercial and principally social enterprises is also pertinent. Understanding which particular category enterprises come under will provide clarity on how to run these enterprises such as whether to list or delist, to conduct partial or full asset sales and to understand the required capital structure controls, debt discipline, and external audits.

How has it contributed to Development Goals?

Khazanah’s principal funding is from shareholder equity. It utilises debt financing and proceeds from divestment activities to fund its investment activities. Khazanah’s ultimate holding body and hence the sole shareholder, is the Ministry of Finance (MoF).

In terms of contribution, between 2004 and 2021, Khazanah paid RM15.6 billion in dividends to the government (or MoF) averaging RM 1.3 billion a year over the past five years. Dividends of RM2 billion each had been declared in 2020 and 2021.

Investment income contributed to 16.3% of total government revenue in 2021, of which Khazanah contributed to about 6% of investment income through its dividends. Though the contribution to government revenue through dividends remains marginal when compared to other tax revenue streams, Khazanah continued to deliver societal value and impact through various other initiatives.

During the pandemic, RM20 million was contributed by Khazanah as COVID-19 relief to the government. Therefore, Khazanah acts as a buffer against future pandemics and can assist the government in its relief measures.

One of Khazanah’s foundations – Yayasan Hasanah – directly and indirectly assisted 1.5 million people through Covid-19 relief efforts and various other programmes, with an allocation of RM554 million in 2021.

The Khazanah Research Institute was set up to undertake analyses and research on the pressing issues of the nation, and based on the research, provide policy recommendations to improve the well-being of Malaysians. A total of 30 publications were released in 2021.

Khazanah also works on development projects for the improvement of the Malaysian economy. This includes Dana Impak, which is a newly created project with an allocation of RM6 billion over 5 years. This is carried out to increase Malaysia’s economic competitiveness and build national resilience. This focuses on 6 areas namely; digital society and technology hub, quality health and education for all, decent work and social mobility, food and energy security, building climate resilience, and competing in global markets.

The full brief can be accessed at: Holding Company for SOEs: Learnings for Sri Lanka

This article was developed as part of the Strategic Insight Series of the Economic Intelligence Unit (EIU) of the Ceylon Chamber of Commerce (CCC) in collaboration with the Colombo Stock Exchange (CSE). The Strategic Insight Series are a series of briefs that focuses on key contemporary topics that matter to the private sector.



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The government is taking steps to streamline trade facilitation, customs processes, investment approvals, and improving export facilities – Prime Minister

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Prime Minister Dr. Harini Amarasuriya stated that the government is taking steps to strengthen local exporters by making trade facilitation, customs procedures, and investment approvals more efficient, and by improving export services.

The Prime Minister made these remarks while addressing the 27th Presidential Export Awards 2024/25 ceremony organized by the Ministry of Industries and Industrial Development together with the Export Development Board.

At this ceremony, which was held to recognize the best exporters of Sri Lanka for the financial year 2024/2025, a total of 107 awards including 15 overall awards and 92 sectoral awards for products and services were presented. Merit awards were also presented to eligible sectors based on applicants’ performance and their contribution to national economic development. Awardees were selected on several criteria such as export market diversification, job creation, growth in export revenue, repatriation of export income, environmental sustainability, institutional social responsibility, and value addition.

Institutions that demonstrated outstanding performance in the export sector were presented with the prestigious Presidential Export Awards for the year under the patronage of Prime Minister Dr. Harini Amarasuriya and Minister of Industries and Industrial Development, Mr. Sunil Hadunnetti.

Further expressing her views, the Prime Minister stated:

“The Presidential Awards Ceremony for exporters reminds us that Sri Lanka’s progress depends not merely on policies or administration, but on the ability to produce, to create value, and to compete internationally.

Over the past year, we faced numerous challenges. As a result, global markets and supply chains were disrupted. Economic uncertainty prevailed. We faced natural disasters. Despite this, many exporters had to adjust to these changes, reorganize production processes, diversify customers, and adopt digital technologies in order to remain competitive in the market.

The impact of the Ditwah cyclone also affected several industries within the export sector. Production facilities, storage facilities, and transportation routes in affected areas were damaged. Production chains and delivery schedules were disrupted.

Under such a difficult situation, some exporters experienced significant setbacks while trying to meet international export demands.

The government is taking steps to support exporters by assessing the damages they suffered due to the emergency situation, restoring their operations, and helping them recover. The government is also working to strengthen resilience against future natural disasters and to rebuild affected areas in a way that minimizes the risk of similar situations arising again.

Sri Lanka is currently undergoing a new economic transformation. For many years, instability, policy inconsistencies, and administrative inefficiencies hindered the progress of the country. This weakened investor confidence and made it difficult for businesses to plan ahead.

However, the present government is committed to governance based on stability, transparency, and accountability. This is not a short-term approach. It is a long-term process to ensure that the country does not fall back into uncertainty.

For this purpose, the government is implementing strong fiscal management, predictable policies, clear and simplified regulations, anti-corruption measures, major institutional reforms, measures that allow businesses to plan ahead, instill investor confidence, minimize unnecessary barriers, and support the development of the private sector.

For a long time, we relied heavily on international loans to sustain national expenditures. However, this is not leading a path toward a stable future. Our progress depends on our ability to earn through trade, innovation, and global engagement.

Your ability to take Sri Lankan expertise and creativity to the world is a strength for the entire nation. The government is ready to extend the necessary support to achieve this.

We understand that issues such as policy inconsistencies, delays that increase operational costs, limited access to competitive financing, gaps in infrastructure and technology, weaknesses in trade facilitation, and slow progress in expanding market access have impacted you. I would like to assure you that the government is directly addressing these challenges.

The focus of the government has drawn to build efficient, transparent, and predictable systems, streamlining trade facilitation, customs processes, and investment approvals, improving export facilities, and minimizing the gap between local businesses and global markets.”

This event was attended by Ministers Kumara Jayakody, Ramalingam Chandrasekaran, Sunil Kumara Gamage; Deputy Ministers Chathuranga Abesingha, Eranga Weerarathna, Arun Hemachandra, Nishantha Jayaweera, Muditha Hansaka Wijayamuni; Governor of the Central Bank Nandalal Weerasinghe; Secretary to the Ministry of Industries and Industrial Development Tilaka Jayasundara; Chairman of the Export Development Board Mangala Wijesinghe, along with ambassadors, foreign delegates, exporters, and a large gathering.

[Prime Minister’s Media Division]

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India unveils future of South Asia’s construction industry

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Dignitaries at the launch of EXCON 2025

South Asia’s largest construction equipment exhibition began December 9 in Bangalore, India showcasing a broad range of next-generation machinery and technologies. Equipment and tools demonstrated improved productivity, advanced controls, energy-efficiency, telematics integration, IoT-enabled monitoring and predictive maintenance. These innovations support better project outcomes across roads, highways, rail, and metro. Sea ports. Airports, mining and development.

The event stands as a platform for collaboration, knowledge exchange and business engagement. It brings together stakeholders who are shaping India’s transition towards infrastructure that is smarter, greener and aligned with global standards.

“India continues to strengthen its position as one of the world’s most dynamic growth engines supported by decisive policy direction and a renewed national focus on infrastructure” said Rajiv Memani President Confederation of Indian Industry (CII) at the inauguration of EXCON 13th edition held at Bangalore International Exhibition Centre, Bengaluru. Memani further stated that as investment expands across transportation, logistics, urban development and manufacturing, EXCON 2025 becomes a vital platform to showcase how industry and innovation are shaping this momentum.

Speaking at the inauguration R Mukundan President designate CII and Chairman EXCON 2025 noted that ‘’India is on a historic growth trajectory aiming to become a $30 trillion economy by 2047 under the Viksit Bharat vision and Infrastructure will be the backbone of this transformation with INR 11.21 lakh crore allocated for Financial Year 2025/26. Projects such as Bharatmala, high-speed rail and Smart Cities under PM Gati Shakti are driving connectivity and urban development.” He said Excon supports this by bringing innovators, policymakers and industry leaders together to introduce automation, IoT, AI-driven machinery and green technologies to improve execution and competitiveness. He added, “Every edition sets benchmarks and will continue to empower stakeholders and drive modernisation.”

“EXCON 2025 stands as a testament to India’s growing engineering excellence and global aspirations. As we embrace new technologies and sustainable practices, the Indian construction industry is poised shape the infrastructure landscape of tomorrow” said Deepak Shetty, President ICEMA and CEO/MD JCB India Ltd.

“The exhibition brings together Industry leaders, policy makers and innovators of South Asia to highlight the crucial role of advanced technologies, manufacturing strength and green practices in shaping the national growth as we move in to a new era of infrastructure” said Chandrajith Banerjee, Director General, CII.

Over one million business visitors are expected during this period. Over 1250 exhibitors display a wide range of construction equipment from across the world with 7 country pavilions from China, France, Germany, Italy, South Korea, Turkey and the United Kingdome. They showcase a wide spectrum of global construction technologies and equipment solutions. The presence of these pavilions reinforces EXCON’s role as a bridge between global innovation and South India infrastructure goals.

OTR Lanka and Laugfs Corporation (Rubber) Ltd took part as trade partners from Sri Lanka.

Event was sponsored by well reputed brands such as; AJAX, BKT, CATERPILLAR, conmar, JCB, KOBELCO, KOMATSU, MRCRUSHING IT, PUZZOLONA, RMX, SANY, SCHWING Stetter, TATA HITACHI, VENUS, ACE, Apollo, ARX, Bobcat, EMERALD, HAIL STONE. HYUNDAI, MAHAVEER DISTRIBUTORS, Parker, VELVEX, walavoil, wipro and WIRTGEN GROUP.

by Claude Gunasekera

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CHEC South Asia & Southeast Asia completes emergency clearing of A5 Highway

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China Harbour Engineering Company Ltd South Asia & Southeast Asia, working in close coordination with the Sri Lanka Army, the Road Development Authority (RDA), local authorities and surrounding communities, has recently completed the emergency clearing of the A5 highway, restoring a vital transportation link that had been severely obstructed by landslides and debris in the aftermath of Cyclone ‘Ditwah’. The work was carried out from 04th December to 10th December over a continuous seven-day period.

The A5 highway, a key route for community connectivity, emergency service access and the transport of essential supplies, became impassable after the cyclone triggered extensive damage across multiple regions. Responding to urgent requests from relevant authorities, China Harbour South Asia & Southeast Asia mobilised its specialised rescue teams, heavy machinery and technical expertise to accelerate the clearance process and support national recovery operations. China Harbour has been working in Sri Lanka since 1998, marking 27 years of partnership with the country. The company noted that it has also actively participated in rescue and relief efforts during major national disasters such as tsunamis, bomb attacks and the COVID-19 pandemic, underscoring its longstanding commitment to Sri Lanka during moments of crisis.

A coordinated ground operation involving rescue personnel, 24 land-clearing machines and 36 trained workers was deployed to the affected areas. Working through unstable terrain and challenging weather conditions, the team removed large volumes of earth, fallen trees, rocks and damaged structures, allowing authorities to safely reopen the highway for public use.

The restoration of the A5 highway forms an important component of the company’s broader relief efforts following Cyclone ‘Ditwah’. These efforts included early rescue deployments, the distribution of emergency supplies and coordinated financial support through the Chinese Chamber of Commerce in Sri Lanka (CCCSL), reaffirming China Harbour South Asia & Southeast Asia’s commitment to supporting the country during times of national need.

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