Malaysia considers new bill to tighten GLC and GLIC governance

Prime Minister Datuk Seri Anwar Ibrahim announced that the Malaysian government is considering a new Government-Owned Entities Bill. The legislation aims to strengthen the governance of Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs) to prevent the misuse of power and ensure management adheres to strict integrity principles.

Anwar cited past failures in institutions such as 1MDB, FELDA, and Tabung Haji as justification for the bill, noting that previous reports from Royal Commissions of Inquiry (RCI) and White Papers highlighted significant governance weaknesses. The proposed law seeks to establish clearer legal frameworks, define limits of authority, and ensure that government entities are not treated as personal or family assets.

Furthermore, the Prime Minister emphasized a strict prohibition on political interference in investment decisions. He stated that project selections and investment priorities must be determined by professional bodies and experts rather than being influenced by political interests. Anwar acknowledged that these reforms might face resistance from certain political elites and business groups accustomed to existing practices, necessitating strong political will.