Malaysia's Finance Ministry moves to tighten oversight of state-owned firms
The Ministry of Finance is finalising a draft Statutory Bodies and Controlled Entities (Financial Governance) Act to impose stricter controls on government-owned companies.
Malaysia's Ministry of Finance is close to completing a draft Statutory Bodies and Controlled Entities (Financial Governance) Act intended to strengthen governance of government-owned enterprises. The bill would introduce tougher rules for establishing new companies, reinforce approval mechanisms for investments and loans, and increase the responsibility of directors and senior managers. Officials said the act seeks to guarantee that corporate choices are prudent, transparent and responsible.
In parallel, the ministry plans to tighten regulations on bonus payouts and procurement by Federal Statutory Bodies, ensuring they reflect performance, fiscal capacity and national interests. It also intends to streamline agency jurisdictions to eliminate overlapping duties, close oversight gaps, and improve monitoring and follow-up processes.
