KUALA LUMPUR, March 20 — Prime Minister Datuk Seri Anwar Ibrahim said the culture of establishing companies and maintaining unprofitable companies must stop immediately.
As such, the government is implementing strict monitoring of companies under government-linked investment companies (GLICs) and government-linked companies (GLCs).
So far, only a small number of GLICs and GLCs have been closed.
“However, in the spirit of transparency and governance, many of those closed were under government agencies, such as small companies under the Rubber Industry Smallholders Development Authority or Federal Land Development Authority that did not meet the original requirements and objectives.
“If these companies are unprofitable, we will close them,” he said during the question-and-answer session in Dewan Negara today.
Anwar, who is also the Finance Minister, said there are no benefits to establishing a company, having a board of directors and allowances, and continuing to incur losses.
“We feel this practice is unbeneficial and must end,” he added.
The Prime Minister was responding to Senator Datuk Mustafa Musa's supplementary question regarding the achievements and effectiveness of the board composition of GLICs and GLCs in meeting investment operation integrity and performance.
He noted that the monitoring of GLICs and GLCs is very strict now.
“I can guarantee that in 2023, there was comprehensive and stricter monitoring, and the management of these companies will be held accountable if weaknesses need to be addressed.
“So, for GLICs and GLCs, I assure you that it will be tougher, and this is now being applied to all government agencies where some practices cannot be reasonably defended,” Anwar said.
Regarding procurement by GLICs and GLCs, he said these companies spent RM59 billion, which is 32 per cent of the total expenditure from 2020 to 2024, on Bumiputera companies, including job opportunities, training, and education through Bumiputera GLC vendor development programmes.
“For example, a subsidiary of UEM Group uses the Malaysian Productivity Business Excellence framework to help businesses obtain certifications such as ISO and participate in industry awards like the Industry Excellence Award and the Global Performance Excellence Award to strengthen their competitiveness in the market,” Anwar said.
GLCs and GLICs are also dedicated to supporting employee welfare and community well-being, assisting vulnerable groups and families affected by disasters, and supporting the revitalisation of Kuala Lumpur.
Under the Bumiputera Economic Transformation Plan 2035, GLICs and GLCs are given specific roles to contribute to the Bumiputera agenda through investments in high-potential Bumiputera companies, vendor development programmes, and Bumiputera human capital development programmes.
— Bernama
