An Attack of Bad Ideas on GLCs

Setting It Straight

An Attack of Bad Ideas on GLCs

Asian Development Bank (ADB) economist levels accusations that GLC muscle stifles the Malaysian economy. PNB chairman Tan Sri Abdul Wahid Omar speaks to AWANI Review's Razak Chik to put the record straight.

Perhaps nothing riles Permodalan Nasional Berhad (PNB) chairman Tan Sri Abdul Wahid Omar more than when Government-linked Companies (GLCs) are cited as impediments that suffocate corporate Malaysia.

The latest broadside was delivered by Asian Development Bank economist Jayant Menon, where he carries the official title of Lead Economist in the office of the Chief Economist looking into trade, international finance and development issues.

Through a policy paper entitled `Government-linked Companies:Impacts on the Malaysian Economy”, published on 18 Dec by the Institute for Democracy and Economic Affairs (IDEAS), Menon posited that private investments are being stifled by GLC competition.

He observed that less government intervention in business will free up room for private investments the chance to thrive.

Wahid was moved to respond to the negative assertions made by Menon at the tail end of a press conference arranged to announce PNB’s year-end ASB and ASN performance at its headquarters on Friday 22 December.

Wahid also rebuts the criticisms by pointing to the performance of GLCs in the key areas of better financial performance, governance and nation building.

Wahid further points to the financial performance of GLCs that rewarded not just the government but also the rakyat.

GLCs according to Wahid had instilled a culture of good corporate governance – borne by the numerous awards earned.

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