Malaysia plans law to tighten oversight of government-linked firms
Anwar Ibrahim said the proposed legislation would limit leaders’ powers and strengthen accountability, while calling for closer scrutiny of overseas investments.
Malaysia plans legislation to strengthen governance of government-linked companies (GLCs) and government-linked investment companies (GLICs), Prime Minister and Finance Minister Anwar Ibrahim told Parliament on October 27. The proposal would establish stricter rules governing the authority and responsibilities of their leaders.
Responding to questions in the Dewan Rakyat, Anwar pointed to failings involving 1Malaysia Development Bhd (1MDB), Felda and Tabung Haji. He said subsidiaries of government agencies also needed clear rules, but that the government had not identified breaches comparable in scale to those previously seen at 1MDB and Tabung Haji.
Anwar said political and business elites accustomed to previous practices had strongly resisted tighter controls. Leaders needed to be accountable and could not regard the institutions they managed as belonging to themselves or their families, he said.
On overseas investments, he urged closer scrutiny following losses at Britain’s Battersea Power Station redevelopment. He said the initial investment was too high, although efforts to recover it were continuing. Most overseas investments had delivered substantial returns, he added, while some had lost money.
The government had given domestic investment priority over the past three years, Anwar said, with an initial target of directing at least 20 per cent of investments into Malaysia. That proportion would increase according to the institutions’ readiness and capacity.
He also defended the broader performance of Retirement Fund Inc (KWAP), saying its failed eFishery investment should not define the fund’s results. KWAP had recorded profits of RM8 billion, he said.
