MP urges govt to consider shutting down or merging overlapping GLCs
PARLIAMENT | Lee Chean Chung (Harapan-Petaling Jaya) today urged the government to consider shutting down or merging government-linked companies (GLCs) that have overlapping functions.
During the debate on the 13th Malaysia Plan (13MP) in the Dewan Rakyat, Lee said this would help strengthen GLCs so they can compete in high-growth, high-value sectors globally.
PARLIAMENT | Lee Chean Chung (Harapan-Petaling Jaya) today urged the government to consider shutting down or merging government-linked companies (GLCs) that have overlapping functions.
During the debate on the 13th Malaysia Plan (13MP) in the Dewan Rakyat, Lee said this would help strengthen GLCs so they can compete in high-growth, high-value sectors globally.
“It would be better to have one GLC like TSMC (Taiwan Semiconductor Manufacturing Company) to boost our national economy than to have many companies focused on property development,” he said.
Lee also raised the need to restructure GLC roles so they align more closely with the country’s development priorities.
He said Malaysia has yet to attract large-scale investments in high-growth, high-value sectors - which are essential for a competitive and sustainable economy.
“I still see many GLCs, whether at the federal or state level, focusing their investments on luxury real estate, commercial development, and highways.
“The question is, why are entities like Khazanah Nasional and Permodalan Nasional Berhad (PNB) still prioritising such projects, when the country urgently needs capital injection into high-growth, high-value sectors such as semiconductors, electronics, high-value chemical processing, artificial intelligence (AI), pharmaceuticals, machinery, automation, and green technology?
“Therefore, I propose a comprehensive study, followed by a 13MP follow-up plan, to gradually phase out the involvement of federal and state GLCs and government-linked investment companies (GLICs) from residential and commercial property sectors over the next five years,” he added.
Addressing overlaps
In October 2024, the government decided to establish a Special Committee on the Rationalisation of Federal Statutory Bodies, including Companies Limited by Guarantee (CLBG), to address overlaps between statutory bodies and GLCs.
According to Bernama, Prime Minister Anwar Ibrahim said the committee is chaired by former Treasury secretary-general Asri Hamidon and monitored by the Madani Monitoring Unit.
“The issue is how to generate growth, ensure commercial viability, and at the same time meet national agendas,” Anwar was quoted as saying.
Elaborating further, Lee said GLCs and GLICs should be given development mandates focused on high-growth, high-value and export-oriented sectors.
“They can also be mandated to develop social housing, particularly in urban areas, as well as build industrial parks to attract technology investments.
“Public investments through GLCs should be utilised to accelerate the country’s transition towards a knowledge and technology-based economy - not just to grow commercial assets that do little to support national development priorities,” he said.
Reporting by B Nantha Kumar, Alyaa Alhadjri, Qistina Nadia Dzulqarnain
