KUALA LUMPUR, Oct 27 — The government is considering a Government-Owned Entities Bill to tighten governance at government-linked companies (GLCs) and related agencies, and prevent misappropriation such as that seen in 1Malaysia Development Berhad (1MDB), Felda and Tabung Haji.
Prime Minister Datuk Seri Anwar Ibrahim said the proposed law would set clearer rules and ensure government-owned entities, including their subsidiaries, were subject to effective oversight.
He said weaknesses and serious breaches in the management of government institutions had been highlighted in Royal Commissions of Inquiry (RCIs), task force reports and white papers.
“Our proposal to table the Bill is not only for (strengthening) governance, but also to establish very clear rules and laws for regulatory purposes.
“That is why I believe the Bill will establish strict measures… even for GLCs, governance must be tightened. Those vested with authority and the figures appointed to these positions must be more accountable and must not treat these entities as property belonging to themselves or their families,” he said during Ministers’ Question Time in the Dewan Rakyat today.
Anwar was responding to a supplementary question from Syahredzan Johan (PH-Bangi) on measures to strengthen corporate governance at GLCs and statutory bodies to prevent a recurrence of misappropriation involving government institutions.
Anwar said oversight of subsidiaries was one weakness that needed to be addressed, as they were not necessarily subject to the same controls as their parent agencies.
He said efforts to strengthen governance also faced resistance from vested-interest groups, including political elites and businesspeople accustomed to past practices.
Anwar stressed that political figures were prohibited from interfering in GLC and government-linked investment company (GLIC) project selection and investment priorities.
Instead, investment decisions must be made by investment bodies comprising professionals and people with relevant expertise, he said.
He said this was crucial to ensuring prudent investment decisions, particularly in light of past governance failures. — Bernama