Make the Governance of all our GLC World Class at Par with International Standards

The last Parliamentary sitting of 2019 ended on 5 Dec 2019. Here’s the summary of progress on PH’s Institutional and Political Reform 
Promise 22 Political Appointment, GLCs



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No to foreigners heading Prasarana, MAHB, say Loke and Guan Eng

17 January 2020

Transport Minister Anthony Loke said that the two new chief executive officers of Prasarana Malaysia Bhd and Malaysia Airports Holdings Bhd (MAHB) will be locals since the two are strategic assets of the government.

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Dr Mahathir: GLC mismanagement among reasons govt insists on having golden share

14 January 2020

Prime Minister Tun Dr Mahathir Mohamad said that the government’s golden share in selected Malaysian government-linked companies’ (GLCs) is caused by mismanagement of the companies. The golden share allows the government to overrule board recommendations for top-management appointments or exert more controls on the these companies if needed.

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Khazanah MD to govt: Control GLCs via regulators, not golden share

14 January 2020

Datuk Shahril Ridza Ridzuan, the Malaysian sovereign wealth fund Khazanah Nasional Bhd’s managing director said industry regulators are suffice to regulate government-linked companies (GLCs) instead of the golden share. Malaysia has good regulators for industries such as energy, aviation and telecommunication sectors.

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MoF saves RM1m yearly on new CEO salaries

27 November 2019

Finance Minister Lim Guan Eng said that the new wage adjustments and the newly appointed top executives at 18 state-owned enterprises (SOEs) under the Finance Ministry (MoF) has cut government spending by RM1.04 million per year on salaries.

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PM: GLCs, GLICs must focus on helping fuel nation’s growth

30 October 2019 

Prime Minister Tun Dr Mahathir Mohamad said that government-linked investment companies (GLICs) and government-linked companies (GLCs) must focus on creating strong institutions and establishing the necessary infrastructure and supportive policies to stimulate the private sector and create a positive environment that would facilitate the country’s socio-economic development.

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Instruct GLCs to galvanize efforts to increase Bumiputera equity holding in the country

11 February 2019 

MARA subsidiaries are being consolidated under GLIC Mara Corp after the change of federal government. After the MARA Inc. scandal, leaders stated that “due diligence processes” were completed and issues resolved, stating the intention to continue the development of a “complete ecosystem in Mara’s commercial entities” to uplift the Bumiputera economy.

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Improve the corporate governance of GLCs at national or state levels

Controversial Hospital Sale in Malaysia Draws Questions

14 February 2020

Prince Court Medical Centre in Kuala Lumpur which started as a luxurious medical tourism facility in 2007 was bought over by sovereign wealth fund Khazanah Nasional from Petronas in 2018. It has since gathered a sum of RM600 million (US$144.9 million) loss. This re-instituted the worry about kleptocracy in transferring the assets to private interest and run the risk of tainting Malaysia’s reputation for top-class medical care. Alleged insurance frauds were reported and the CEO Chong Su-Lin left following complaints of misconduct filed with the Malaysian Medical Council (MMC) in 2016.

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Top public-listed companies transparent in corporate reporting are GLCs — report

7 November 2019

Eight out of Malaysia’s top 10 public-listed companies scoring the highest in corporate reporting transparency are government-linked. The rankings were revealed in the Malaysian Institute of Corporate Governance (MICG) 2019 report titled Transparency in Corporate Reporting: Assessing Malaysia’s Top 100 Public Listed Companies (TRAC Report 2019). It is made to focus on anti-corruption reporting, the report sought to examine whether the top 100 largest Malaysian-listed companies’ (by market capitalisation) anti-corruption programmes have grown stronger since the first report in 2017; as well as their corporate liability readiness in terms of having established adequate procedures, before the enforcement of corporate liability for corruption offences under the Malaysian Anti-Corruption Commission (Amendment) Act 2018 in June 2020. Bursa Malaysia Bhd chairman Datuk Shireen Ann Zaharah Muhiudeen said the private sector and the business community must play their parts, as the country moves forward in its anti-corruption agenda.

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GLC salary guidelines to be fairer, serve as example for private sector

24 October 2019

Pakatan Harapan aims to increase the share of compensation to employees, as per the Shared Prosperity Vision 2030 economic agenda. Economist Dr Muhammed Abdul Khalid said that the increment for CEOs and top management are much higher than average or low-income workers that it is not optimal for the economy. In terms of economic multiplier effect, it is better to reward the average or low-income workers as they spend the money and stimulate the economy instead of saving it. Based on the SPV2030’s handbook, PH wants to increase employee compensation (CE) to gross domestic product (GDP) to 48% from 35.7% – meaning for every ringgit the economy makes, 48 sen goes to workers. Singapore, South Korea, and Australia, have much higher CE rates than Malaysia of 39.7%, 45.7% and 47.2% respectively.

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Ensure appointment of GLC Board members based on merit and professionalism, and not politics

PH: GLCs restructure not aimed at strengthening PM, Bersatu

1 November 2019

Institute for Democracy and Economic Affairs (IDEAS) senior fellow Dr Edmund Terence Gomez’s claim on how the restructuring of government-linked companies (GLCs) seek to elevate Prime Minister Tun Dr Mahathir Mohamad’s portfolio and his party, Bersatu has been rejected by Pakatan Harapan (PH).

PH said the restructuring of GLCs involved all agencies, cutting across all ministries; Khazanah had been moved to PMD from MoF, however MoF Inc is still the largest shareholder of the sovereign wealth fund. PH explained that PNB has been placed under the PMD before 2018. PH further explain that several economic corridor agencies have been moved to the MoF and the Ministry of Rural Development (MRD) from PMD. The establishment of the Ministry of Economic Affairs (MEA) according to PH, which was to take over economic functions, primarily from the Economic Planning Unit, which was placed under the PMD during the previous BN administration. The Federal Land Development Authority (Felda) was moved to MEA to reduced the size of PMD.

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Dr Mahathir still de facto finance minister — IDEAS

31 October 2019

Institute for Democracy and Economic Affairs (IDEAS) senior fellow Professor Dr Edmund Terence Gomez said that the Prime Minister Tun Dr Mahathir Mohamad is still the “de facto” finance minister even though he is not officially holding the portfolio but he  has consolidated control over key statutory bodies and ministries in the country such as Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) which were moved to the Prime Minister’s Department (PMD) from the ministry of finance (MoF), despite being prohibited from holding the MoF portfolio after the 14th general election last year. In the end of July 2018, Dr Mahathir named himself as chairman of Khazanah and Yayasan Pelaburan Bumiputra, which maintains PNB as an investment vehicle and he appointed his close ally, PKR deputy president Datuk Seri Mohamed Azmin Ali in both boards. This is not what is stated in Pakatan harapan’s manifesto as the appointment of state and national GLC board members will be made based on merit and professionalism not based on politics.

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1 July 2019 – A Chinese University of Hong Kong professor and a senior Tencent Holding Co Ltd executive are among three new members of Khazanah Nasional Bhd’s board.

10 June 2019 – Celcom’s former chief special projects officer, Datuk Noor Kamarul Anuar Nuruddin has emerged as a favourite for TM’s CEO, sources told NST.

17 June 2019 The various state-owned Mentri Besar Incorporated (MBI) companies are not necessary government-linked companies (GLCs) and should be scrapped as they lack transparency and accountability, Professor Terence Gomez said today. 

14 May 2019: Candidates who will hold leadership positions in government-linked companies (GLC) and authorities will be vetted first.

11 May 2019 – However, in one specific area, where much change was expected, little has changed. Pakatan had pledged to reform a well-entrenched government-business institutional framework that had contributed to extensive corruption, debilitating patronage, even a kleptocracy. Umno’s fall was largely attributed to the abuse of 1MDB, Felda and Tabung Haji, institutions known as government-linked companies (GLCs), raising expectations that these enterprises would be reformed. However, what appears to be hampering GLC reform is the matter of consolidating power which is contributing to the perpetuation of the politics of patronage.

9 May 2019A month after Pakatan Harapan’s historic win, the government led by Tun Dr Mahathir Mohamad spared no time to reform the nation’s administration and its government-linked companies (GLCs).

16 April 2019 – Malaysia needs to move on from the scandals of yesteryears, while the government continues with the clean-up jobs to build the right foundation for the country to rise up and reclaim the position among the leading economies globally.

31 March 2019 – There are no political appointees in government-linked companies, a policy decided by the government. All candidates for the board of directors for statutory bodies are vetted to ensure highly qualified and professional candidates are appointed.

24 January 2019A group of NGOs and think tanks have criticised the PH government for failing to abide by its manifesto promise not to appoint politicians to lead GLCs.

27 August 2018 – Following the historical 14th general election, there has been a slew of changes in GLC leadership. Most notable was Tan Sri Zeti Akhtar Aziz’s appointment as chairperson of Permodalan Nasional Bhd (PNB) and Sime Darby Property Bhd, while Datuk Ahmad Nizam Salleh was appointed chairman of Petroliam Nasional Bhd. Most recently, Datuk Shahril Redza Ridzuan was appointed chairman of Khazanah Nasional Bhd after the resignation of the sovereign wealth fund’s entire board.

22 June 2018 – A major shake-up among the head honchos of government-linked companies (GLCs) is expected to take place in the coming weeks.

Politically-appointed heads of GLCs are in focus given that their appointments were made at the pleasure of the previous Government. Many of the heads of GLCs were given board positions as recognition of their services.

All GLCs will be required to create a Bumiputera vendor development programs

To adopt international standards (eg. OECD Guidelines on Corporate Governance of State-Owned Enterprises) to improve GLCs

No updates

Set up a Parliamentary Committee to receive regular reports from the Government Investment Division at the Ministry of Finance on the GLCs’ performance


5 April 2019 – GLCs should be answerable to the Dewan Rakyat and be accountable for all the corporate directions and strategies, as part of the current administration campaign for total transparency in administrations and operations.Former Khazanah Nasional Bhd MD Tan Sri Mohd Sheriff Mohd Kassim said the select committees that are currently being formed at the Parliament should have the jurisdiction to monitor the GLCs and their operations.