Anwar calls for stricter rules for GLCs, says bosses must not treat them as family property

KUALA LUMPUR, Oct 27 — Prime Minister Datuk Seri Anwar Ibrahim suggested the government is contemplating a Government-Owned Entities Bill to enhance governance at government-linked companies (GLCs) and associated agencies, aiming to deter misappropriation similar to that seen in 1Malaysia Development Berhad (1MDB), Felda and Tabung Haji.

The proposed legislation would establish clearer guidelines and ensure diligent oversight of government-owned entities, including their subsidiaries. Anwar's proposal goes beyond governance strengthening; it seeks to lay down precise rules and regulations for regulatory purposes. He stated that the Bill would enforce stringent measures, even for GLCs, emphasizing that governance must be tightened and that those in authority and appointed figures must become more accountable, refraining from treating these entities as personal or familial property.

During a question-and-answer session in the Dewan Rakyat, Anwar tackled Syahredzan Johan's (PH-Bangi) inquiry on measures to bolster corporate governance at GLCs and statutory bodies, aiming to prevent future misappropriation involving government institutions. He highlighted the need to address oversight weaknesses in subsidiaries, as they might not be subjected to the same controls as their parent agencies.

Anwar also noted that efforts to strengthen governance faced opposition from vested-interest groups, including political elites and businesspeople who are accustomed to past practices. He stressed that political figures are barred from meddling in GLC and government-linked investment company (GLIC) project selection and investment priorities.

Instead, decision-making must be left to investment bodies composed of professionals and individuals with relevant expertise, a crucial step towards ensuring prudent investment decisions, especially considering past governance failures.