The need to reform GLCs and SOEs

There has been much debate on the role of GLCs as a tool for the government to achieve its social objectives and how they are crowding out the private sector due to their dominating presence in the capital market.

Let’s delve deeper into the subject of GLCs. There has been much discussion about GLCs and state-owned enterprises (SOEs) crowding out the private sector, due to the sheer size of these companies. While the government says it wants to see growth driven by the private sector, at the same time, GLCs have frequently been used as a tool to achieve social objectives.