Government weighs bill to strengthen oversight of state-owned entities
Anwar says clearer legal controls are needed for subsidiaries, which may not face the same oversight as their parent agencies.
The government is considering a Government-Owned Entities Bill aimed at strengthening oversight of government-linked companies (GLCs) and related agencies, Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat. He said the proposal seeks to prevent misappropriation of the kind seen at 1Malaysia Development Berhad (1MDB), Felda and Tabung Haji.
Anwar identified gaps in the supervision of subsidiaries, saying controls applied to parent agencies did not necessarily extend to those companies. The proposed legislation would set clearer legal requirements for regulation across government-owned entities and their subsidiaries, he said.
He was answering a supplementary question from Syahredzan Johan (PH-Bangi) about improving governance at GLCs and statutory bodies. Anwar said inquiry reports, special task forces and white papers had exposed management weaknesses and serious breaches at several government institutions.
He also said political figures were strictly barred from influencing project selection and investment priorities at GLCs and government-linked investment companies (GLICs). Such decisions must instead rest with investment bodies staffed by professionals and people with relevant expertise.
Anwar said those appointed to lead government entities needed greater accountability. He added that governance reforms faced resistance from vested interests, including political elites and business people used to previous practices.
