AN independent and transparent body overseen by the Parliamentary Select Committee (PSC) to undertake screening and vetting of nominated directors is necessary in the quest to future proofing Malaysia’s government-linked investment companies (GLICs) with best-in-class governance, capabilities and strategies.
This is to ensure that those appointments are made objectively based on meritocracy, qualified experience and, requiring the appointees to pass a fit-and-proper test by the regulating entity or PSC, according to Socio-Economic Research Centre (SERC) executive director Lee Heng Guie.
Yesterday (Aug 12), the Government unveiled a ‘GLIC mandate recharge’ to reform the mandate and roles of Malaysia’s GLICs so as to be aligned with the national agenda and to support the country’s economic recovery plan.
Dubbed Perkukuh Pelaburan Rakyat (PERKUKUH), the reform comprises 20 key initiatives focusing on achieving a clearer mandate for each GLIC, more investments in catalytic and developmental areas, increased private sector participation and streamlining of the government’s role.
“The GLICs ecosystem requires effective oversight and coordination to strengthen accountability, transparency and trust in carrying out their mandated roles,” he told FocusM.
“It is acknowledged that the current ownership structure of GLCs is convoluted and lacks transparency while GLICs and GLCs (government-linked companies) are not clearly defined and inconsistent.”
Towards this end, Lee proposed the enactment of a Governance and Accountability Act to regulate and monitor their performance in ensuring they are well-governed with best global practices.
“The proposed Act should provide a clear definition of GLICs and GLCs and be applied consistently at both the Federal and state levels,” he pointed out. “There is also a need to review overlapping responsibilities and sometimes counter-intuitive roles with existing GLCs and GLICs.”
Commenting on PERKUKUH, Lembaga Tabung Haji group managing director and CEO Datuk Seri Amrin Awaluddin described the programme as a catalyst for the next-phase transformation of Malaysia’s government-linked investment companies (GLICs).
“PERKUKUH is the opportunity for Malaysia in this crisis. No doubt the pandemic presents a significant challenge, but we have overcome multiple economic downturns and it is time for GLICs to spearhead a new phase of transformation to support economic growth,” he opined.
Meanwhile, Lembaga Tabung Angkatan Tentera (LTAT) chief executive Datuk Ahmad Nazim Rahman described the commencement of PERKUKUH as timely with LTAT’s efforts to transform itself into a retirement fund that provides sustainable and competitive returns for the Malaysian Armed Forces.
“Under PERKUKUH, LTAT will be working closely with the Defence Ministry and Finance Ministry (MOF) to ensure that the fund continues to enhance its ability to deliver on return mandates with increased economies of scale, optimised strategic asset allocations, and strengthen its talent and capability development,” he added. – Aug 13, 2021
