Major Objective Of Government Linked Companies Is To Reduce Financial Burden Of Government. Is This True?

What are the major objectives of a government linked company (GLC)? According to the Parliamentary Secretary for the Ministry of Finance, Datuk Seri Dr Hilmi Yahaya, one main purpose is to help reduce the financial burden of the government.

Another is that GLCs are supposed to help increase the productivity and quality of services given to the public and ensure a balanced development for the country.

Thirdly they are meant to provide solid economic growth, expand the use of new technologies via research and development and fulfill the social responsibilities.

He said the government, via the GLC Transformation Programme launched in May 2004, had cleaned up the objectives and directions of the GLCs, with focus on meeting three basic principles including the Government's Development Policy.

"This covers equality in growth, increased production, development of human resources and the development of the Bumiputera community.

"Two other principles focus on paying attention to performance to raise the value of economy and shareholders (including the government) and the practice of good corporate governance," he said.

Meanwhile, to a question on the steep competition faced with GLCs to win business projects, Dr Hilmi said the government never gave any priority or special treatment to GLCs when giving out business projects.

"Tenders under the Ninth Malaysia Plan are open to all parties including individual companies and GLCs.

"All are given the chance to get involved in government projects," he added.

***** The Parliamentary Secretary's statement looks very impressive to read and the government comes out smelling like a rose. But is that everything that the GLCs are meant for in Malaysia? Stories abound about how they have been misused to promote the personal, financial interests of politicians as well as being manipulated to serve the interests of partisan politics and as a tool in political power play. There are also reportedly some misgivings about how beneficial these GLCs have been for the rakyat.

Anyone would like to agree/disagree and elaborate on the above?

From the 2005 Umno General Assembly: Play Bigger Role To Develop Malays, Abdullah Tells GLCs
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