10 largest Malaysian companies, 1-5
Which are the 10 largest Malaysian companies? One way to measure the size of a certain company is by looking at the market capitalization values. Market capitalization or market cap is obtained by multiplying the share price with the number of shares outstanding of a public company.
In laymen terms, market cap values represent the degree of people’s evaluation on the company’s worth and are considered an important element when assessing the stock pricing.
Following is the list of 10 largest Malaysian companies measured in terms of market cap, based on the latest share market price as of the last day of 2009, 31 December.
1. Sime Darby (RM53.9 billion)
The present Sime Darby was conceived through a gigantic merger between 3 major corporations – Golden Hope Plantations, the Guthrie Group and the old Sime Darby. It was initially named as the Synergy Drive group, and for some probably unknown reason (with many logically pointing the move was meant to retain the old legacy) , was renamed back to Sime Darby.
Today, Sime Darby is the world’s biggest palm oil plantation company, with operation spanning in more than 20 countries worldwide, employing a massive of over 100,000 workers. The current market cap value, however, falls short of its best performance, which peaked at RM71.5 billion on January 2008.
2. Maybank (RM48.6 billion)
Malaysia’s largest bank, Maybank, operates in over 14 countries worldwide including Singapore, Brunei, Philippines, Vietnam, Indonesia, United Kingdom, United States, China and its native country, Malaysia. Of recent, the bank has been allegedly been plagued in some dodgy dealings involving the purchase of some unprofitable banks in the neighbouring country but it did not stop the company from remaining competitive.
Maybank today is helmed by Datuk Abdul Wahid Omar, the man highly credited with some drastic transformations and turnarounds at TM (Telekom Malaysia), as the President and CEO. Wahid was named as the country’s CEO of the Year in 2006.
3. CIMB (RM46 billion)
The country’s second largest bank, CIMB, is quick in chasing Maybank and the bank is anticipated to replace the latter as the largest bank in time to come. By assessing the growth aspect, certainly CIMB is the fastest growing financial institution not only in the country but across the Southeast Asia shore. Its core businesses cover consumer banking, Islamic banking, asset management, insurance and investment.
In terms of asset ownership, CIMB is listed as the fifth largest bank in Southeast Asia behind DBS (Singapore), UOB (Singapore), OCBC (Singapore) and Maybank (Malaysia). The bank serves more than 7 million customers through an extensive network of branches exceeding 600 branches, and employing more than 30,000 workers.
4. Maxis (RM40.3 billion)
A yo-yo entity in the share boards (it was delisted in mid 2007 and was relisted again some 2 years later), Maxis Communications was established by Harvard graduate Ananda Krishnan in 1995 and quickly grew to become one of the largest telco companies around in the country. With a net worth of over US$7 billion, the founder Ananda is the third richest man in Southeast Asia behind Robert Kuok and Ng Teng Fong.
Maxis speedy growth is attributed to Ananda’s appetite to hire top performing graduates, many of those graduating with top honors from renowned universities. The company has to date launched the country’s first 3 satellites – Measat 1, 2, 3 and with the fourth in the pipeline.
5. Public Bank (RM39.9 billion)
Public Bank is not always the people’s favourite bank, but it continues to perform well year by year and is consistently on the receiving end of banking awards and accolades. The bank was founded by Teh Hong Piow, who started his banking career as a bank clerk in UOB Bank way back in the 50s, and continued climbing the corporate ladder (while also working with other banks) before deciding to set up Public Bank.
Public Bank is one of those well managed financial institutions and was duly named as the Best Managed Company in Malaysia in 2008, outdoing other major corporations including CIMB, IOI Corp, Genting and DiGi in the process. The bank has the lowest NPL (non-performing loans) ratio compared with other banks.