KUALA LUMPUR: A second wave of reforms is needed for government-linked companies (GLCs) and government-linked investment companies (GLICs), according to a report in The Edge.
This is to help enhance governance standards and to put in place adequate institutional measures to prevent the mismanagement of public resources.
The report quoted Lee Heng Guie, executive director of the Socio-Economic Research Centre (SERC), as saying, “The time has come for a second round of transformations, specifically aimed at improving the governance of GLCs. The management of public funds in carrying out nation-building objectives require greater public scrutiny.
“There is also a need to redefine the role of GLCs in the economy, with a view of ensuring that the limited public financial resources are efficiently managed and invested while not crowding out the private sector. The inefficient ones should be restructured or disposed of.”
In May 2004, the government launched a 10-year initiative called the GLC Transformation Programme, which, among others, revamped sovereign wealth fund Khazanah Nasional Bhd and set higher standards for the management of GLCs. Read more