Malaysia moves to tighten oversight of state-linked firms with new governance bill

In response to a query from MP Syahredzan Johan, Prime Minister Anwar Ibrahim outlined a proposal to pass a law governing the conduct of government-linked companies (GLCs) and government-linked investment companies (GLICs). The legislation would define stricter responsibilities and caps on authority for executives, addressing weaknesses highlighted in earlier Royal Commissions and task-force reports on 1MDB, Felda and Tabung Haji.

Anwar emphasized that no current breaches match the scale of those past scandals, but political will is needed to overcome resistance from entrenched interests. He also noted that investments by entities such as Khazanah Nasional Bhd and KWAP have supported local firms like Farm Fresh Bhd and funded start-up programmes, while urging tighter review of foreign projects after the costly Battersea Power Station venture. The government plans to prioritize domestic investment, targeting at least 20% of GLC/GLIC capital to stay in Malaysia.