Prime Minister Anwar Ibrahim’s pledge of "no procurement without tender" must also extend to government-linked companies, said the Malaysian Trades Union Congress (MTUC).

In a statement today, it said this reform is much needed to curb the wastage of national funds.

"We welcome the government's administrative reforms, including that procurement must go through a tender process. 

"This is a proactive measure taken to curb leakages and prevent any possibilities of corruption at all levels," said its secretary-general Kamarul Baharin Mansor (above).

"MTUC is confident the reforms carried out by the prime minister are necessary to avoid wastage of public funds.

"This will send a message to investors that Malaysia is changing towards a better country.

"However, we urge the prime minister to instruct government-linked companies (GLCs) and government-linked investment companies (GLICs) to reform," he said.

"The practice of direct negotiations on the basis, among others, of urgent procurement and limited suppliers must be stopped."

Apart from that, Kamarul also urged the government to ensure that GLCs and GLICs provide reasonable wages to workers. 

The wage gap needs to be reduced by reforming the administrations of GLCs and GLICs, he said.

He said the wage gap between the management and workers is very large - up to 20 times with some workers. 

Reforms are particularly needed for those in top positions such as CEOs who serve in GLCs and GLICs for a long time and who handle large government funds.

"The appointment period of GLC/GLIC CEOs should be limited to a maximum of eight years to maintain good governance.

"This is meant to curb the possibility of corruption and abuse of power," he said.

On Nov 29, Anwar pledged that approvals for government procurements under his leadership can no longer be conducted without tender.