KUALA LUMPUR, Oct 27 — The government plans to introduce legislation to tighten governance at government-linked companies (GLCs) and government-linked investment companies (GLICs), Prime Minister Datuk Seri Anwar Ibrahim said.

He said the proposed law would set clearer, stricter rules, including limits on the powers and responsibilities of those leading the entities.

“Past experience has shown both strengths and weaknesses. These issues have been documented in Royal Commissions of Inquiry (RCIs), task force reports and White Papers on 1Malaysia Development Bhd (1MDB) and Felda, as well as in cases involving Tabung Haji. The breaches were numerous and clearly excessive, making them difficult to defend,” he said during the Prime Minister’s Question Time in the Dewan Rakyat.

He was responding to a supplementary question from Syahredzan Johan (DAP-Bangi) on measures to improve governance at GLCs, GLICs and statutory bodies to prevent a recurrence of scandals involving 1MDB and Tabung Haji.

Anwar said clear rules were also needed for subsidiaries of government agencies, adding that the government had not identified governance breaches on the scale previously seen at 1MDB and Tabung Haji.

Efforts to impose tighter controls had faced strong resistance from political and business elites accustomed to old practices, making political will essential to address the problem, he said.

“Governance must be strengthened, and the powers of those appointed to lead these entities must be clearly limited. They must be held accountable and must not treat these institutions as their personal or family property,” he said.

Earlier, Syahredzan had asked Anwar to explain why government departments, GLICs, GLCs and statutory bodies were involved in development projects, and how this could address public concerns without compromising their core mandates and responsibilities.

Anwar said investments by GLICs and GLCs helped local companies expand and attract private investment from domestic and foreign investors.

He cited Khazanah Nasional Bhd’s Dana Impak, which has invested RM2.6 billion since its establishment in 2021.

Khazanah initially acquired a 30 per cent stake in local dairy company Farm Fresh Bhd before it went public at a valuation of RM2.5 billion, Anwar said. Khazanah later divested its stake after the company had established itself.

Budget 2027 also allocated RM450 million through Jelawang Capital, Khazanah and the Retirement Fund Inc’s (KWAP) Dana Perintis to develop start-ups, he added.

Anwar also called for closer scrutiny of overseas investments to avoid a repeat of the Battersea Power Station redevelopment project in Britain.

He said the initial investment had been too high and incurred losses, although efforts were under way to recover the investment.

He was responding to a supplementary question from Hassan Karim (PKR-Pasir Gudang) on the amount invested by GLCs and GLICs in the Battersea redevelopment in London and its benefits to Malaysia’s economy.

Anwar said KWAP, Khazanah and Permodalan Nasional Bhd continued to seek investment opportunities at home and abroad.

However, the government had prioritised domestic investments over the past three years, setting an initial target of channelling at least 20 per cent of investments into Malaysia, he said.

The proportion would rise depending on the readiness and capacity of the institutions concerned, he added.

Anwar said most overseas investments had generated substantial returns, although some had incurred losses.

On KWAP’s investment in eFishery, he said the failed investment should not be taken as representative of the fund’s overall performance, noting that KWAP had recorded RM8 billion in profits. — Bernama

* Editor’s note: KWAP stands for Kumpulan Wang Persaraan (Diperbadankan) in Malay, or Retirement Fund Inc in English.