KUALA LUMPUR (Dec 2): Government-linked investment companies (GLICs) including Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) will continue to monitor and improve governance in investment evaluation processes, said Finance Minister II Datuk Seri Amir Hamzah Azizan on Monday. 

Thus, the enactment of the Public Finance and Fiscal Responsibility Act 2023 (Act 850), which contains key components of fiscal policy management, such as more efficient fiscal risk management, is an important step in Malaysia'a efforts towards improving fiscal discipline and ensuring macroeconomic stability.

"This Act, among other things, also sets a financial guarantee target to not exceed 25% of gross domestic product to curb the rise in liabilities the government has to bear," said Amir Hamzah in a question and answer session at the Dewan Negara on Monday.

He was responding to Senator Datuk Judiet Fidilis @ Noraini Idris on the principle of fiscal responsibility as outlined in the Public Finance and Fiscal Responsibility Act, and how this can improve the rationalisation of investments using public money by government agencies.

"Taking lessons from FashionValet’s losses, Khazanah and PNB continue to be sensitive of the risks in the dynamic start-up investment landscape, and will ensure effective risk management, with the principle of accountability in the investment process through detailed assessment and due diligence, including rational investment considerations, evaluation and reasonable returns," he added. 

Amir Hamzah said the government is also implementing measures to reform institutions and better governance to improve spending efficiency to ensure that investments provide the best value.

Among the measures that have been and will be implemented include the introduction of guidelines on the management and governance of federal statutory agencies, Amir Hamzah said.

For more Parliament stories, click here.

Uploaded by Tham Yek Lee