Guan Eng: GLCs need to improve performance

KUALA LUMPUR: Governmentlinked companies (GLCs) must practise corporate governance and need to improve their performance, says Finance Minister Lim Guan Eng.

“That is why the government has come out with directives.

“We have proper corporate governance, not just public governance for the government, but corporate governance that we must practise,” said Lim.

He said this could be seen clearly when the government stopped politicians from being appointed to the GLC boards.

“All directors are not from political parties.

“They are from the private sector and that is a very important step to direct the focus from politics back to business and performance,” Lim said during an interview on a radio programme. He was answering questions posed on the GLC transformation agenda as many were seen to have poor quality performances, with sub-standard return on equities and many waiting for directions.

Lim brushed off market talk of Tun Daim Zainuddin having a hand in the GLCs’ ecosystem, saying it was merely a rumour.

“You can't stop rumours, just as there were rumours about the inheritance tax and capital gains tax before Budget 2019. But, at the end of the day, these rumours are shown for what they really are,” he said. Lim was also asked about Daim, a former Finance Minister who is also chairman of the Council of Eminent Persons, and his role in advising the government.

“He (Daim) was appointed by Prime Minister Tun Dr Mahathir Mohamad. But, the Prime Minister has stressed that at the end of the day, he gets advice from all sources and of course, Daim for him is one of his principal sources.

“But decisions are made by the Cabinet and by him (PM). Advice is given but not necessarily taken,” he explained. — Bernama