Kuala Lumpur, 14 November 2024: The Institute for Democracy and Economic Affairs (IDEAS) is calling for substantial reforms in Malaysia’s Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs) to ensure they operate transparently and in alignment with Malaysia’s economic and public welfare goals. In response to rising concerns over GLC and GLIC investment practices, IDEAS advocates for holistic governance reforms to ensure these entities are more accountable, transparent, and focused on serving the public interest.

“We must ensure that GLCs are not only stewards of public funds but also trusted pillars of economic and social development. It is essential that they are governed by clear, well-defined rules and subject to independent scrutiny, with proper protections for whistleblowers,” said Aira Azhari, Acting CEO of IDEAS. 

IDEAS recommends a five-point reform framework:

1. Establish Ownership Rationale and Strategic Purpose: Clearly articulate each GLC’s purpose, including privatisation for non-essential entities. 
2. Implement Rigorous Monitoring and Central Oversight: Create performance charters with quantifiable objectives for social and economic impact, subject to annual public reporting akin to standards of listed companies. 
3. Enforce Qualified  Independent Appointments and Conflict of Interest Policies: Require transparent appointments, free from political bias, especially from active politicians. 
4. Enhance Whistleblower Protections: Support the establishment of an independent ombudsman, offering a safe channel for exposing misconduct. 
5. Parliamentary Role in Accountability: Parliament should serve as the primary oversight body, with MPs fulfilling their roles in Parliamentary Select Committees (PSSCs) rather than accepting board positions in GLICs. This strengthens the separation of governance and oversight, empowering MPs to keep GLICs accountable to the public. 

“With our Pantau Kuasa initiative, we have seen firsthand how strong oversight and independent appointments are vital for responsible governance. A well-structured Performance Charter—with clear objectives, transparent reporting, and independent governance—would anchor GLCs in public accountability, not political agendas,” added Aira. 

“IDEAS does not support Cabinet or Parliament directly approving GLC investment or remuneration decisions, as this may worsen political interference,” stated Alissa Rode, Senior Research Manager at IDEAS. “Instead, the government should act as an active owner, setting guiding policies for board remuneration and well-defined performance charters. 

Parliament has a key role to scrutinise GLCs’ adherence to policy, review governance policies, and strengthen oversight. Embedding these standards in law will secure GLC transparency, safeguard public funds, and ensure that GLCs serve the rakyat’s interests sustainably.” 

— ENDs —

Download Media Statement PDF File Here

For enquiries, please contact:
Ryan Panicker
Assistant Manager, Advocacy and Events
T: 03 – 2070 8881/8882 | E: ryannesh@ideas.org.my