KUALA LUMPUR, March 13 — The government wants to see not only output but also the outcome not only in terms of the financial performance of government-linked companies (GLCs) and government-linked investment companies (GLICs), but also in terms of the continued positive impact on the business ecosystem, especially the micro, small and medium enterprises (MSMEs).
Prime Minister Datuk Seri Ismail Sabri Yaakob said the benefits of economic growth must be distributed fairly to ensure sustainable and inclusive development for the whole Keluarga Malaysia.
“Although we implemented the GLC High Performance Programme in 2004-2014, which included, among others, clarifying the mandate of GLCs in the context of national development and improving corporate governance, they need to remain agile, especially in terms of continuous improvement and strengthening the role of GLC/GLIC to remain competitive.
“This is important in the context of the new post-COVID-19 normal as well as the ever-changing global business landscape to ensure that GLCs/GLICs can provide optimal impact to the country’s socio-economic development,” he said in an interview in conjunction with the GLC Open Day 2022.
The GLC Open Day 2022 from March 11-13, 2022 at the Kuala Lumpur Convention Centre saw the participation of 25 GLICs/GLCs.
To date, GLCs account for about RM445 billion in market capitalisation or about 25 per cent of the market capitalisation of Bursa Malaysia.
Ismail Sabri said the programme to revamp the functions and roles of GLCs and GLICs, which had been intensified since September 2021, could catalyse change through the gradual recovery of the country’s economy.
He said the initiative was aimed at re-strengthening the role as well as renewing the capabilities of GLCs and GLICs in Malaysia, especially in the rapidly changing operating landscape following the COVID-19 pandemic.
“These initiatives, among others, aim to restructure entities within the GLC/GLIC ecosystem to optimise government fiscal resources, improve governance systems, increase targeted outcomes, generate new growth through strategic sectors and catalyse investment in sustainability industries.
“An increasingly urgent need due to the impact of COVID-19 is the restructuring of the social security system,” he said.
Meanwhile, Ismail Sabri stressed that the government wanted continued coordination and cooperation through the GLC/GLIC Disaster Response Network platform which is now known as GLC Demi Rakyat dan Negara (GDRN).
“Looking ahead, I think GDRN can be a network that is not only responsive, but also more proactive in providing assistance to Keluarga Malaysia in need.
“In terms of outcomes, all these will reduce the duplication of efforts undertaken by GLCs/GLICs individually and increase efficiency in adopting resource allocation,” he said.
He added that when there is a platform to coordinate these efforts, the government can also collect data to ensure that no Keluarga Malaysia is left out in terms of assistance and building a meaningful life.
“Indirectly, this will also create transparency for the programmes run by the GLCs/GLICs, while ensuring effectiveness in the outcome of social impact efforts,” he explained.