has brought into focus what is easily the biggest drag on Malaysia - the serious management troubles plaguing the country’s government-linked companies and the urgency for sweeping overhaul in these entities that dominate the economy.
At a recent political huddle, several PH lawmakers suggested a review in the allocation of contracts by national oil corporation Petroliam Nasional Bhd that had long been on the agenda before Anwar came to power, but they quickly cautioned that Anwar had to tread cautiously because of the “Malay agenda”. “It is a political minefield,” said one participant at the internal PH strategy session referring to GLCs.
GLCs have been central to Malaysia’s decades-old social engineering programme called the New Economic Policy that is aimed at alleviating the economic status of the country’s politically dominant ethnic Malay community and other indigenous groups collective referred to as bumiputrasthrough positive discrimination ranging from university admissions, employment in the civil service and the award of government contracts.
Incorporated in 1994, Khazanah controls commanding equity stakes in companies that dominate key sectors of the economy, such as CIMB Group, a prominent player in regional finance, national communications giant Telekom Malaysia, regional healthcare powerhouse IHH Group and national power utility Tenaga Nasional.and its lead role in the development of Iskandar Malaysia in Johor where the integrated film and television facility is located.
Why Khazanah decided to completely exit from Iskandar Malaysia Studios is unclear. But the deal has raised governance issues for the Anwar’s administration. As prime minister, Anwar holds the position of chairman of Khazanah and it is unclear whether his government was advised about the studio disposal.
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