New law proposed to strengthen governance of statutory bodies, controlled entities

KUALA LUMPUR: The Finance Ministry is finalising a proposal to enact new legislation, the Statutory Bodies and Controlled Entities (Financial Governance) Act, aimed at bolstering governance across government-owned companies. This proposed law seeks to introduce stricter procedures for establishing new companies, enhance mechanisms for approving investments and loans, and improve accountability among boards of directors and management, according to the ministry's response to a query from Azli Yusof (PH-Shah Alam) about measures to address public fund leakages following audit reports.

Beyond legislative reforms, the government is also bolstering compliance with regulations pertaining to bonus payments and procurement by Federal Statutory Bodies. This move intends to ensure that decisions consider performance, financial capacity, and government interests. Furthermore, the ministry plans to clarify and streamline jurisdictions among relevant agencies to minimize overlapping functions, address oversight gaps, and ensure monitoring and follow-ups are executed in a more structured, consistent, and effective manner.