MOF finalising proposed law to strengthen governance of govt-owned companies

KUALA LUMPUR, Oct 8 — The Malaysian government is working on a new law to enhance the oversight of state-owned enterprises. The Ministry of Finance (MOF) is drafting the Statutory Bodies and Controlled Entities (Financial Governance) Act, which is set to be enacted soon. This legislation is designed to introduce more stringent procedures for the creation of new companies, tighten controls over investment and loan approvals, and bolster the accountability of corporate boards and management teams.

According to the MOF, the primary objective of this Act is to ensure that all business decisions within these entities are made with prudence, transparency, and responsibility in mind. This response to a query from Azli Yusof (PH-Shah Alam) also outlines plans to strengthen regulatory compliance concerning bonus payments and procurement processes within federal statutory bodies.

Beyond legislative changes, the government intends to clarify and streamline the roles of various agencies to eliminate overlaps, fill gaps in oversight, and ensure that monitoring and follow-up actions are carried out in a more systematic, uniform, and effective manner.