KUALA LUMPUR: Government-linked contracts and businesses in Malaysia only make up about 15% of the Malaysian economy, says Khazanah Nasional.
Its managing director Datuk Shahril Ridza Ridzuan said as such, there was a need for Malaysian enterprises to focus on delivering goods and services that are consumer-driven, rather than depending on government contracts and businesses.
"If you look at role of government-linked companies (GLCs) and the government in business, people need to understand that GLCs, government-linked investment companies (GLICs) and the government basically are actually a small part of Malaysian economy.
"The Malaysian economy, like most developing economies, has evolved to become a consumer- and demand-driven economy rather than an economy driven by government contracts and supplies," he told reporters at the Khazanah Megatrends Forum 2019 in Mandarin Oriental on Monday (Oct 7).
He was responding to a question about measures to increase bumiputra corporate equity stake in the economy to 30%.
"If we want to target greater bumiputra participation in the economy, we have to look at how to get them to participate especially in demand- and consumer-driven products and services.
"Government contracts and businesses are a really small fraction of the economy, probably no more than 15% of economy, while the other 85% is about responding to external demand and internal consumer demands.
"That's where a lot of the focus needs to happen," he said.
Shahril added that Khazanah Nasional aims to recover profitability and to rake in profits of about RM5bil this year.
The goal to pare down its debt to about RM35-RM40bil, which is expected to be achieved within three to five years, he said.
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