Putrajaya plans law to tighten oversight of govt-owned firms

The Malaysian government intends to introduce legislation to enhance governance over government-owned companies and statutory bodies, according to Prime Minister Anwar Ibrahim. The proposed law aims to avert future scandals reminiscent of the 1MDB affair, as well as issues plaguing institutions like Tabung Haji and Felda. The 1MDB scandal saw billions of dollars siphoned from a sovereign wealth fund, leading to extensive investigations and legal repercussions worldwide.

In July, Anwar disclosed that Felda was grappling with losses amounting to nearly RM10 billion due to poor management and undue political influence. Reports indicated the entity was burdened with debt, compelling the government to bear substantial financial liabilities annually. The royal commission of inquiry into Tabung Haji, responsible for managing pilgrims' funds, recommended overhauling the institution, emphasizing stricter oversight, forensic audits on selected investments, and curbing political interference.