New law must bar politicians from key posts in GLCs, says lawyer

Prime Minister Anwar Ibrahim has urged the enactment of a law to oversee government-owned companies managing public funds and assets. Lawyer Salim Bashir, former Malaysian Bar president, advocates that such legislation must expressly prohibit politicians from occupying key positions within these entities. The proposed law would require candidates for high-ranking roles to be identified through conventional recruitment methods, including advertisements and interviews.

Independent interview panels, possibly chaired by the chief secretary to the government, would evaluate these candidates. The shortlisted candidates would then be referred to a parliamentary committee for thorough scrutiny before formal appointment.

The government's intention to draft this legislation emerged following the 2027 budget presentation, with Prime Minister Anwar aiming to prevent a repeat of high-profile scandals such as 1MDB, as well as crises involving Tabung Haji and Felda. The royal commission of inquiry into the Tabung Haji fund, declassified in July, revealed that political interference in board appointments was a major factor contributing to the fund's financial woes.

Several chairmen and board members appointed between 2014 and 2018 were active politicians, and their decisions on hibah rates, Haj fees, and financial aid were influenced by political considerations.

While lawyer Salim Bashir supports the proposed bill, lawyer Shukor Ahmad expressed reservations. He argued that existing laws and regulations, if rigorously enforced, are sufficient to address governance issues within government-linked companies (GLCs) and statutory bodies. Shukor contends that political involvement and the appointment of politicians or politically connected individuals to directors' boards are the primary concerns.

He maintains that unless the new law specifically targets this problem, existing laws are adequate but require strict enforcement. Shukor emphasizes that there is enough qualified talent available to effectively manage these organizations, suggesting that political affiliation should not be a decisive factor in appointments, provided appointees meet the necessary qualifications.