1malaysia development berhad (1mdb) ‘politic, profit or csr driven company?’ sahrol nizam mat...
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1Malaysia Development Berhad (1MDB)‘Politic, Profit or CSR Driven Company?’
Sahrol Nizam Mat Arif (815738)Khairul Hidayat Jaamat (813278)Muhammad Hizami Aizat Che Harun (814649)Syaiful Arief Syah Mohamed Said(814663)
GMUL5063 – Law, Ethics & Corporate Social Responsibility
• History of 1MDB
• Management of 1MDB
• 1MDB Corporate Governance
• 1MDB Business Strategy
• 1MDB CSR Initiative
• Politic, Profit or CSR Driven?
• Conclusion
Presentation Outline
History of 1MDB
• 1Malaysia Development Berhad (1MDB) was previously known as Terengganu Investment Authority (TIA).
• However, in July 2009 TIA was renamed as 1MDB in conjuction with establishment of 1Malaysia and its expansion as a federal entity enable its benefits to reach a broad spectrum of Malaysians
• 1MDB is wholly owned by federal government of Malaysia and was established to drive strategic initiatives for long-term economic development for the country by forging global partnerships and promoting foreign direct investment
Vision of 1MDB“A strategic enabler for new ideas and sources of growth”
Mission“To drive sustainable economic development by forging strategic global
partnerships and promoting FDI””
• History of 1MDB
• Management of 1MDB• 1MDB Corporate Governance
• 1MDB Business Strategy
• 1MDB CSR Initiative
• Politic, Profit or CSR Driven?
• Conclusion
Presentation Outline
Management of 1MDB
• 1MDB practices three-tier check-and-balance system that comprises a Board of Advisors, Board of Directors and a senior management team.
• Consist of 9 members including a chairman• Currently, Prime Minister of Malaysia is the chairman of the board• 4 of the members are foreigners (whom the country has strategic partnership with 1MDB)
• Consist of 6 members including a chairman. • Chairman of the is YBHG TAN SRI DATO' SERI LODIN WOK KAMARUDDIN• Other members are for various business expertise i.e. retailing, restructuring, banking etc
• Head by Mr Mohd Hazem Abd Rahman - Managing Director & Chief Executive Officer• Currently, 1MDB has 3 subsidiary companies that involves in real estate and energy plant
• History of 1MDB
• Management of 1MDB
• 1MDB Corporate Governance• 1MDB Business Strategy
• 1MDB CSR Initiative
• Politic, Profit or CSR Driven?
• Conclusion
Presentation Outline
1MDB Corporate Governance
1MDB Corporate Governance
Board Of Advisors
1MDB Corporate Governance
Board of Directors
1MDB Corporate Governance
Senior Leadership
1MDB Corporate Governance
• History of 1MDB
• Management of 1MDB
• 1MDB Corporate Governance
• 1MDB Business Strategy• 1MDB CSR Initiative
• Politic, Profit or CSR Driven?
• Conclusion
Presentation Outline
• Strategic development company wholly owned by the Government of Malaysia
• Fund size Rm 11B as at December 2010• Joint Ventures with International Company
Petrosaudi International Limited State Grid Corporation Of China (SGCC) Abu Dhabi Future Energy Company
• Development for:- Real Estate Energy Tourisms Agribusiness
1MDB Business Strategy
Current Business:- Real Estate
•Tun Razak Exchange (TRX) extend –beyond just real estate. –Strategic real estate developments –to capture high multiplier effects and spur a vibrant economy. The projects are “building blocks” to help shape Kuala Lumpur as a robust global city destination for investors and tourists alike.
•TRX aims –to attract and connect businesses as well as talent through new strategic developments and best global services–to create the critical mass needed to accelerate Malaysia’s economic growth towards a high-income economy. It is thus seen as a critical enabler to the Government's Economic Transformation Programme
1MDB Business Strategy
Current Business:- Energy
•1MDB’s energy subsidiaries are led by experienced management teams with deep industry knowledge and expertise.•1MDB is now the second largest independent power producer in Malaysia, in terms of power generation capacity.•Net power generation capacity of 4520.5MW, with 2030MW in Malaysia and 2490MW overseas•Intent towards more sustainable energy security for Malaysia in the long term, as power availability is critical to maintain investors’ confidence and support the economic growth of the country.•1MDB’s power assets provide a launch pad for 1MDB to play a bigger role in the local and international energy markets, including global expansion when it supports strategic initiatives that will bring long-term benefits to Malaysia.
1MDB Business Strategy
• History of 1MDB
• Management of 1MDB
• 1MDB Corporate Governance
• 1MDB Business Strategy
• 1MDB CSR Initiative• Politic, Profit or CSR Driven?
• Conclusion
Presentation Outline
1MDB CSR Initiative
Dana Belia
Dana PIBGAcademic GrantFood Supplementary Programme
1Malaysia Mobile ClinicEnterpreneurshipMicro Credit
Board of Trustees
• History of 1MDB
• Management of 1MDB
• 1MDB Corporate Governance
• 1MDB Business Strategy
• 1MDB CSR Initiative
• Politic, Profit or CSR Driven?• Conclusion
Presentation Outline
Politic, Profit or CSR Driven?
Political driven?
Politic, Profit or CSR Driven?
Profit Driven?
Politic, Profit or CSR Driven?
CSR Driven?
• There’s some controversy for 1MDB in terms of its corporate governance and the business arrangement such as the figures of hefty asset injection into 1MDB by the government, the transfer of land rights to the company, foreign partners for the two main real estate developments etc.
• The ‘buying-over’ initiative towards the existing companies such as buy over power plant company is to bailout the organization and to safeguard the interest of the partners.
• Opposition party keep accusing that 1MDB is a government tools to illegally running the business behind the shadows with unnecessary arrangements
• This acceptance of mindset change towards a high-income nation limits for 1MDB to demonstrate that government is capable of positive change to enhance any opportunity to build up the national capacity in terms of economic transformation program
Highlights/ Issues
• The allegation that 1MDB is bogus entity is incorrect due to all information are accessible by public thru SSM. This is clearly that 1MDB in the Memorandum of Articles and Associations lodged with the Companies Commission of Malaysia (CCM) and accessible to the public such as its annual reports which are transparent.
• 1MDB has made millions in profits and is generous in sharing its profits with the people to provide them the opportunity to a better future, a better life.
• Millions of people are directly or indirectly benefits from 1MDB’s CSR projects from the past years.
• The establishment of 1MDB is drive by political interest. This due that the company received fully backed by the government i.e been awarded for the TRX projects. However, although there is a political agenda in the establishment of 1MDB, the company also contribute in developing to better nation.
Conclusion