Reimagining Malaysia Part 4: Government-Linked-Companies (GLCs) Governance

When it comes to the topic of governance and management of public funds, many people think only about government agencies and departments. However in Malaysia, government-linked companies (GLCs) (and some statutory bodies*) as well as government-linked investment companies (GLICs) also handle significant amounts of public wealth. Therefore, attention must also be focussed on their governance and performance to protect and maximise the people’s interest. 

GLCs as Political Vehicles

According to studies conducted by Universiti Malaya’s Prof Edmund Terence Gomez, seven federal GLICs – Minister of Finance Inc (MoF Inc), Khazanah Nasional Bhd, Permodalan Nasional Bhd, the Employees Provident Fund, Lembaga Tabung Angkatan Tentera, Lembaga Tabung Haji and Kumpulan Wang Persaraan (KWAP) – control 35 of the top 100 listed companies in Malaysia, and have a combined market capitalisation of 42 percent of the total market capitalisation of the companies listed on Bursa Malaysia.

Ten levels down, these GLICs have exposure to 6,342 companies by way of shareholding of their listed companies, subsidiaries and associates. The figure below shows the web of control of the GLICs with respect to the government agencies[1].

From this chart, it isn’t difficult to see that the prime minister, who’s also the finance minister, now has large control not only in the political world but also in the corporate world. There is a dangerous concentration of power in just one person – the Prime Minister. 

The concentration of political and corporate power combined with the weak institutions has made the ground fertile for the birth of the biggest scandal in the history of Malaysia.

Reimagining Malaysia Part 3: Legislative Reform in Selangor the Future of Parliament

Many people may not aware, since the change of state government in 2008, the Selangor Legislative Assembly has undergone a series of legislative reforms. I will share some of the important checks and balances mechanisms that have been put in place in Selangor to strengthen the legislature and how Parliament can be reformed in the future for national-level legislative oversights.

Formation of Select Committees in Selangor

Since 2008, the Selangor Legislative Assembly has formed six select committees and and four special select committees. These committees meet when the state assembly is not in session and help to provide legislative scrutiny on executive administration.

Select Committee i. Public Account Committee (PAC) or Jawantankuasa Kira-Kira Wang Kerajaan ii. Select Committee of District and Land Office or Jawatankuasa Pilihan Pejabat Daerah dan Tanah (JP-PADAT) iii. Select Committee of Local Authority or Jawatankuasa Pilihan Pihak Berkuasa Tempatan (JP-PBT) iv. Select Committee of Agency, Statutory Body and Subsidiary Company or Jawatankuasa Pilihan Agensi, Badan Berkanun dan Anak Syarikat (JP-ABAS) v. Standing Orders Committee or Jawatankuasa Peraturan Tetap vi. Rights and Privileges Committee or Jawatankuasa Hak dan Kebebasan

Special Select Committee i. Selangor Competency, Accountability and Transparency Committee (SELCAT) or Jawatankuasa Pilihan Khas Mengenai Keupayaan, Kebertanggungjawaban dan Ketelusan Selangor ii. Special Select Committee on Poverty Eradication or Jawatankuasa Pilihan Khas Pembasmian Kemiskinan iii. Special Select Committee of Management of the Assembly or Jawatankuasa Pilihan Khas Pengurusan Dewan iv. Special Select Committee of Water Resources Management of the State of Selangor (JPK-SAS) or Jawatankuasa Pilihan Khas Pengurusan Sumber Air Negeri Selangor

Reimagining Malaysia Part 2: Don’t Trust Politicians, Trust Institutions

If there is only one thing you could change in this country, what would it be? Because of my upbringing, my answer used to be education.

Six years in politics has made me realise that the most important aspect of any government is governance. Strong governance is the prerequisite to a good economy, education, social welfare and everything else. When the government is clean, taxpayer money is put to good use; when the government is accountable, its performance can be monitored and subsequently improved.

Power corrupts and absolute power corrupts absolutely. People do change, more so politicians, who are placed in high places. To quote Abraham Lincoln, “Nearly all men can stand adversity, but if you want to test a man’s character, give him power.”

Throughout the years in politics, I have come to the realisation that even the most convicted and passionate politicians are sinners that are trying to do the right things for the country. Temptation will come in many forms and if left unchecked, even the most saintly politician will fall.

This is why we need a strong checks and balances system to safeguard the interests of the people against those in power. If you forget everything I am going to say, please remember this: Good leaders come and go, only good institutions remain.