KUALA LUMPUR (Nov 14): The Institute for Democracy and Economic Affairs (IDEAS) has called for reforms in Malaysia’s Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs).

Ideas, a research institute that promotes solutions to public policy challenges, said this in response to rising concerns over GLC and GLIC investment practices.  

IDEAS, in a statement on Thursday, recommends a five-point reform framework, noting the significance of articulating each GLC’s purpose.

The institute said whistleblower protections should be enhanced to offer a safe channel for exposing misconduct as well as ensuring that parliament serves as the primary oversight body.

To this end, Ideas said Members of Parliament should "fulfil their roles in Parliamentary Select Committees rather than accepting board positions in GLICs".

Such a move will strengthen the separation of governance and oversight, empowering MPs to keep GLICs accountable to the public, it added.

It noted that the parliament has a key role to scrutinise GLCs’ adherence to policy, review governance policies, and strengthen oversight.  

Embedding these standards in law will secure GLC transparency, safeguard public funds, and ensure that GLCs serve the rakyat's interests sustainably, it said.

“It is essential that they [GLCs] are governed by clear, well-defined rules and subject to independent scrutiny, with proper protections for whistleblowers,” Acting CEO of IDEAS, Aira Azhari said.

"IDEAS does not support Cabinet or Parliament directly approving GLC investment or remuneration decisions, as this may worsen political interference.

"Instead, the government should act as an active owner, setting guiding policies for board remuneration and well-defined performance charters,” Senior Research Manager at IDEAS, Alissa Rode added.