Terms Definition

State
Owned state-owned enterprise means an enterprise:
Entreprise (a) that is principally engaged in commercial activities; and
(SOE) 1 (b) in which a Party:
i. directly owns more than 50 percent of the share capital;
ii. controls, through ownership interests, the exercise of more than 50
percent of the voting rights; or
iii. holds the power to appoint a majority of members of the board of directors
or any other equivalent management body.

Government
Linked In Malaysia, GLCs (Government-Linked Companies) and GLICs (Government-
Companies Linked Investment Companies) fall under the TPPA definition of SOE.
(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.

Government
Linked GLICs are investment arms of the government that allocate government funds to
Investment the GLCs.
Companies
(GLIC) 2 There 7 entities referred to as GLIC:

1. Minister of Finance (Incorporated)[MOF (Inc).]

2. Khazanah Nasional Berhad
3. Employess Provident Fund
4. Lembaga Tabung Haji (LTH)
5. Armed Forces Fund Board
6. Retirement Fund (Incorporated)
7. Permodalan Nasional Berhad (PNB)

Company
Limited by A public company incorporated with the principle liability of its members is limited
Guarantee by the constitution to such amount as the members undertake to contribute to the
(CLBG)3 assets of the company if the company is wound up.

A CLBG incorporated should not be involved in any activity which benefits the
company or its members and must not take or hold any land without a license
issued by the Ministry of Trade Cooperatives and Consumerism, Malaysia
(Minister).
A CLBG can only be formed for the following objects:
(i) providing recreation or amusement;

1
http://www.treasury.gov.my/index.php/en/procurement/tppa.html
2
http://www.treasury.gov.my/index.php/en/contactus/faqs/gic.html
3
https://www.ssm.com.my/Pages/Legal_Framework/Document/01_Guidelines%20on%20CLBG_r1.pdf
 (ii) promoting commerce and industry;
(iii) promoting art;
(iv) promoting science;
(v) promoting religion;
(vi) promoting charity;
(vii) promoting pension or superannuation schemes; or
(viii) promoting any other objects useful for the community or country, such
as:
(i) environment;
(ii) health;
(iii) education;
(iv) research;
(v) social; or
(vi) sports.

For avoidance of doubt, no other company can be formed for purposes specified
above.