Time is right for fresh GLC reforms, say analysts

Source: FMT News

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

Transparency: Corporate Malaysia doing better than government — Terence Fernandez

Source: The Malay Mail Online

BY TERENCE FERNANDEZ

AUGUST 15 ― On August 8, the Malaysian Institute of Corporate Governance (MICG) launched its inaugural report on transparency in corporate reporting among Malaysia’s top 100 public listed companies (PLCs).

As expected, and feared, many companies fell short of the three areas in which they were assessed: anti-corruption programmes (40 per cent); organisational transparency (30 per cent); and sustainability practices (30 per cent).

Out of a possible score of 10, the average company score was a mere 4.6.

But to be fair, some of these companies had already put in place or were in the process of putting in place the desired standards which were not taken into account and included in the final report.

But the results, nonetheless, were not surprising and generally represented the perception of public listed companies having some ways to go in areas of transparent processes including tender procedures and anti-corruption measures where only two companies had cohesive anti-graft training for staff and directors. Read more

The Government’s business: Politics, policies and the corporate sector in Malaysia

SPEAKER: Professor Edmund Terence Gomez Professor of Political Economy, University of Malaya

INTRO: In 2008, when a global financial crisis erupted, a strong critique of poorly regulated capitalism emerged, bringing to the fore debates about models of development that involve the use of government-linked companies (GLCs) to generate growth. Malaysia provides an interesting case of state intervention in the economy to drive economic growth and redistribute wealth equitably. This lecture provides a historical review of government-business relations in Malaysia, tracing how this nexus shaped the mode of the state’s intervention in the economy and the nature of its politics and policies. Particular attention will be paid to critical historical junctures, when crises precipitated change in models of development and the relationship between management control and public governance of GLCs. Read more

No more politicians in GLCs, MACC board tells Putrajaya

Source: The Malay Mail Online

Chairman of Anti-Corruption Advisory Board Tunku Abdul Aziz Tunku Ibrahim advises Putrajaya against appointing politicians to head government-linked companies. — Picture by Yusof Mat Isa

KUALA LUMPUR, June 9 ― The Malaysian Anti-Corruption Commission (MACC) advisory board advised the government today against appointing politicians to head government-linked companies (GLCs), amid the crisis in Felda Global Ventures (FGV).

The board reasoned that most politicians bring their political habits along to the business they are handling, which it said results in unscrupulous practices when they run the business.

“The Advisory Board wishes to express in the strongest possible terms its concern about the government’s long-held practice of appointing party politicians as chairmen of GLCs.

“In every instance, they have fallen well below the ethical standards we have come to expect from those in positions of trust,” chairman Tunku Abdul Aziz Tunku Ibrahim said in a statement today. Read more

Roundup on Budget 2016 – Centre to Combat Corruption and Cronyism (C4)

Source: The Malaysian Insider

 

Anti-graft group gives Budget 2016 low marks for transparency, best practices

Malaysia gets low marks in budget transparency, the Centre to Combat Corruption and Cronyism (C4) said in an analysis of Budget 2016, saying Putrajaya failed to produce three out of eight accompanying documents recommended by international standards.

The documents were a pre-budget statement, a citizens’ budget and a mid-year review report, C4 said.

C4’s analysis also found a lack of mechanisms to enable public and civil society participation in the budget setting process and monitoring of its implementation. Read more

GLCs fund politicians, parties via CSR activities, says Putrajaya

Source: The Malaysian Insider

Government-linked companies (GLC) and Finance Ministry Incorporated vehicles have channelled funds to politicians and political parties through corporate social responsibility (CSR) programmes, Putrajaya says.

These included financial aid for the funding of certain community activities, such as supporting sports day at schools, helping flood victims, buka puasa events and Hari Raya contributions to orphans, single mothers, the disabled and more.

“The total amount of contributions every year depends on the number of applications received and the ability of the companies’ finances to prepare allocations for CRS programmes,” Finance Minister Datuk Seri Najib Razak said in a parliamentary reply. Read more