Transparency, Governance Key For Strategic GLCs Investments - Anwar

KUALA LUMPUR, May 22 (Bernama) -- The government is open to government-linked companies (GLCs) taking calculated losses in strategic sectors such as the digital economy and artificial intelligence (AI), provided there is transparency, good governance and clear policies.

Prime Minister Datuk Seri Anwar Ibrahim said losses alone are not the main concern if the investments are critical for the country’s future economic development.

While commercial returns remain important, Anwar said strategic investments in technology and new ventures must still be pursued carefully and judiciously, adding that the government should not be overly fearful of taking risks in these areas.

“As long as it is transparent, good governance, clarity (of) policies, the issue of loss is not the question,” he said at the Forum Ilmuwan Malaysia MADANI Siri 12 at the Securities Commission (SC) tonight.

“Of course, we want them to have details in some of the things, but for the company that is critical to the economy and the future of this nation, they will be fair,” he said.

Finance Minister II Datuk Seri Amir Hamzah Azizan, Securities Commissioner Malaysia chairman Datuk Mohammad Faiz Azmi and Higher Education Minister Datuk Seri Dr Zambry Abd Kadir were present at the event. 

 Anwar, who is also the Finance Minister, said the government is taking major efforts to combat corruption and strengthen governance to address long-standing structural issues.

He said decades of corruption, abuse of power, and weak governance had deprived poor and marginalised communities of opportunities.

The government is now working to correct these issues through better governance, education reforms and targeted policies.

Anwar said reform efforts were often difficult due to resistance from groups comfortable with the old system, including some political allies.

Anwar also acknowledged concerns over Malaysia’s continued dependence on more than two million foreign workers. He said the country cannot rely indefinitely on cheap foreign labour if it wants to move up the economic value chain.

The government is expanding training through TVET institutions, universities and colleges to strengthen the local workforce, while also engaging industries to remain competitive without excessive reliance on low-cost foreign labour.

Meanwhile, Amir Hamzah said Malaysia’s capital market transformation agenda is centred on turning capital into long-term capability by strengthening economic foundations and activating domestic pool investment.

It is also improving Malaysia’s investability, strengthening technological and industrial capabilities, and enabling scale from individual investments into ecosystem and regional platforms.

“Without a good set of foundations, nothing can be built. Trust is important because when trust is embedded, it becomes easier for capital to help build a country,” he said.

The government is also ensuring small and medium enterprises are not left behind through microfinancing schemes, credit guarantees and housing financing support.

He also cited investments in advanced semiconductor packaging, AI, data centres and the electrical and electronics sector as examples of Malaysia’s push to move further up the value chain.

“Malaysia has to continue strengthening its ecosystem, capabilities and talent base so that investors not only come here but remain and grow here,” he said.

-- BERNAMA