Tighten the screws on loss-making GLC
FocusM | 30 Nov 2018 00:30
Finance Minister Lim Guan Eng has said the government will not dispose its eight government-linked companies (GLCs) that have been reporting consecutive net losses for the last five years.
Lim says he wants to maintain Minister of Finance Inc’s ownership in GLCs to ‘preserve interest in strategic sectors while providing social services and stimulating economic development.’
While it is perfectly normal for a government to undertake these initiatives to promote certain industries or perform social obligations, how long can these entities continue to incur huge losses?
Taxpayers must be wondering if these eight GLCs can turn around any time soon.
Based on the Companies Commission of Malaysia’s (CCM) latest filings, their combined accumulated losses amounted to almost RM11 bil! Their latest financial year losses were also significant.
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