KUALA LUMPUR: A major, but covert, reconfiguration of control of government-linked companies (GLCs) has occurred since Pakatan Harapan took power in a manner that suggests concentration of corporate power in Prime Minister Tun Dr Mahathir Mohamad’s party Parti Pribumi Bersatu Malaysia (Bersatu).
The “GLC Monitor: The State of Play since GE14”, launched by the Institute for Democracy and Economic Affairs (Ideas) this morning, revealed that sovereign wealth fund Khazanah Nasional Bhd and leading bumiputra-based investment fund Permodalan Nasional Bhd have been transferred to the Prime Minister’s Department, from the Finance Ministry previously.
“These two government-linked investment companies have enormous investments in Malaysia’s leading publicly-listed companies, thus giving the Prime Minister significant influence over these enterprises,“ Ideas senior fellow Prof Dr Edmund Terence Gomez (pix) said.
In its election manifesto, the Buku Harapan, the government promised to reform governance of GLCs, including ensuring that the appointment of their board of directors would be made based on merit, not on political considerations.
However, changes have been made to the ministerial reporting lines for GLCs in five key ministries, thus resulting in the concentration of important economic institutions under Bersatu ministers as well as those widely perceived to be aligned to the Prime Minister.
source https://www.thesundaily.my/business/ideas-concentration-of-corporate-power-in-hands-of-pm-HG1549584
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