Govt In Process Of Drafting Act Related To GLCs To Improve Corporate Governance - MOF

KUALA LUMPUR, Aug 29 (Bernama) -- The government is in the process of drafting an act related to government-linked companies (SOEs) to strengthen corporate governance, increase accountability, and optimise performance, said the Finance Ministry (MOF).

The ministry said this initiative is important to improve financial administration that is more organised and to ensure the country’s development potential.

“The government is also committed to implementing institutional reforms that support the national development agenda, which included, among them via the drafting of the Government Procurement Bill, to improve governance and the government's procurement process,” MOF said in a written reply on the Parliament website on Thursday. (The Government Procurement Bill was passed on Thursday.)

The ministry was responding to a question from Tan Sri Mahiaddin Mohd Yassin (PN-Pagoh) on the MADANI government’s efforts to address debt and liabilities that have reached RM1.34 trillion or 64 per cent of the gross domestic product (GDP) and government measures under the Public Finance and Fiscal Responsibility Act to stabilise the rising national debt.

MOF said several control measures are being implemented to address the rising levels of debt and liabilities, including continuing fiscal consolidation efforts, broadening the revenue base, optimising public spending, setting limits on financial guarantee exposure, and reviewing how off-budget projects are being implemented.

Additionally, strategic government initiatives such as the National Energy Transition Roadmap (NETR), the New Industrial Master Plan 2030 (NIMP 2030), and the Government-Linked Companies Empowerment and Reform Programme (GEAR-uP) are expected to stimulate economic activity, thereby strengthening government revenue while simultaneously reducing reliance on borrowing, the ministry said.