Finance minister calls on GLCs, GLICs to reform

by ANIS HAZIM / pic TMR FILE

THE need to reform and strengthen the government-linked companies (GLCs) and government-linked investment companies (GLICs) is important to achieve Malaysia’s aspiration. 

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (picture) said GLCs and GLICs are major players and investors to national development.

“GLCs and GLICs are important pillars of Malaysia’s economic base and contribute roughly RM445 billion or 25% to the Malaysian exchange market (Bursa Malaysia) and provide employment opportunities to over 500,000 Malaysians,” Tengku Zafrul said in his keynote speech at the Retirement Fund Inc’s Transformation Plans launch today.

He noted that GLCs and GLICs are also the main drivers in ensuring the success of various government initiatives such as the RM8 billion JaminKerja programme and the RM40 billion SemarakNiaga programme in Budget 2022.

Additionally, he said GLICs play an important role in driving digitalisation and technology through their investments, and directly support the importance of Malaysia’s increasing long-term economic resilience and generate skilled and high-income jobs in line with the IR4.0.

“To ensure that Malaysia is prepared for the future and in an effort to strengthen its core capacities, GLICs should continue to work on accountable trusts,” he said.

Meanwhile, he highlighted that the government’s Principles on Good Governance proposed environmental, social and governance (ESG) to be applied in the establishment of governance structures in the GLIC investment strategy. 

“This ESG focus priority is also a key enabler for realising the aspirations of a prosperous, inclusive and sustainable Malaysia,” he added.