Bank Islam should be accountable to the public for its poor performance, said DAP secretary-general Lim Guan Eng.

In a statement released today, he said that since Bank Islam is publicly owned, its management has a duty to explain and account to Malaysians for its poor performance.

"The latest announcement by Bank Islam of losses of RM456 million for the financial year ending 30 June, 2005 as compared to RM85.7 million profit last year shows a distinctive pattern of poor corporate performance and declining economic growth," he said.

The massive losses, mostly due to bad loans which the bank is unlikely to recover, was Bank Islam's first loss in 22 years.

"There is a need to carry out a full review on the credit administration and approvals at Bank Islam and take action against those responsible," he said.

He called for "a revamp and shake-up" of the bank, the country's first Islamic bank.

GLCs suffer losses

Lim also said other government-linked corporations (GLC) had suffered losses this year and this reflects declining economic growth in the country.

He cited GLC such as Malaysia Airlines, Telekom Malaysia Bhd, Malaysian Industrial Development Finance Bhd and Proton Bhd.

According to the DAP leader, the economy had declined in the face of rising oil prices.

He expressed concern that the 2006 Budget, announced by the government two weeks ago, had failed to address the problems of reviving the economy and arresting high inflation rate.

"Should the export market be affected by rising fuel prices up to US$100 a barrel, then Malaysia's economy may crash," he warned.

Global crude oil prices reached US$70 per barrel recently.