Khairy: More GLCs may tumble after Khazanah shake-up

  • Nation
  • Thursday, 26 Jul 2018

KUALA LUMPUR: The en bloc resignations of Khazanah Nasional Bhd's entire board of directors does not come as a surprise, says Khairy Jamaluddin (pic).

In a series of tweets on Thursday (July 26), the Rembau MP expressed concerns that more government-linked companies (GLCs) would be broken up and flogged off after the Khazanah shake-up.

"Not surprising. Apparently PM has yet to even grant MD an appointment at the office. BoD meeting cannot be called. Even with upcoming changes, I hope present GLC model will be continued. GLC transformation is a success story. Need tweaks for sure.

"For instance, GLCs have (in some sectors) crowded out private business. This was a long-standing issue. That was probably the spirit of PM's comments that GLCs deviated from the bumi agenda. So tweak needed there," Khairy said.

He stressed that Khazanah's role as the Government's strategic investment arm must continue.

Khairy said the sovereign wealth fund was a very different entity from what it was at the end of Tun Dr Mahathir Mohamad's first tenure as prime minister.

He said at that time, it was essentially a holding entity for the Government's stake in companies, and there were "no strategic role".

"Post PM, Khazanah was transformed from just a holding entity to a strategic investment arm with a mandate to not just increase asset value but also make investments into sectors that would benefit the nation," he added.

"Khazanah recruited the best and brightest Malaysians to do this. It would be a shame to dismantle everything that has been built only to replace it with the business mode of the 1990s. My fear: GLCs will be broken up and flogged off to a new set of 1990-esque businessmen," Khairy said.

Earlier, Khazanah confirmed that all nine members of the board including managing director Tan Sri Azman Mokhtar had offered to resign.

Khazanah said the move was done in order to facilitate a smooth and orderly transition under the new Government.

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