Why Wait To Close Loss Making Glcs


Prime Minister Anwar Ibrahim wants to shut down government-linked companies that are consistently making losses. That is most welcome but what is Anwar, also finance minister, waiting for? He had the full authority to do so since November 2022.
“If these companies are unprofitable, we will close them,” he said during a question-and-answer session in the Dewan Negara recently.
There are no benefits to establishing a company, having a board of directors and allowances, and continuing to incur losses, he added.
Recently, the 2023 Auditor-General’s Report revealed that 86 out of 217 federal government agency subsidiaries reported losses totalling RM2.81 billion. Why not audit them and close the unviable ones, saving billions?
The prime minister should also focus on the losses incurred by companies owned by the states. These are potentially making huge losses too. It will be easier for states controlled by the Madani government but things can be done to make other states more accountable.
Once the auditor-general audits these, figures should be released state-by-state, highlighting bad practices and even identifying areas where corruption is likely to be prevalent. Set loose the MACC on such corporations.
Bad track record
Valuable time has already been lost even as Anwar speaks about shutting the non-performing GLCs. So far, the track record looks bad for companies persistently doing badly.
I can’t recall any large loss-making GLC being shut down recently - the record shows they were bailed out. For example, Malaysia Airlines, and more recently, Sapura Energy.
Part of the problem is the so-called double bottom line, which means profit has to be made in addition to satisfying social purposes such as bumiputera participation and others such as developing small industries.
The contagion effect
Financial institutions are not allowed to fail because of contagion effects - it has a knock-on effect as banking defaults cause problems throughout the affected industry. Strategic industries are also saved but for different reasons. 
An example is Malaysia Airlines, where there are questions of national interest - you cannot be a country and not have an airline, whether private or government-owned. You need to have some control over connectivity to your own country - just as you need airports for connectivity, you need airlines too.
But as far as possible, such strategic industries should be run on commercial lines. If we take Malaysia Airlines as an example again, it has been profitable before. It is most likely the way it is run and by who that determines its profitability.
Unprofitable, Sapura Energy may have been a candidate for closure through liquidation if it can’t meet its obligations - the amount of money spent by the government and bumiputera trust fund Permodalan Nasional Bhd is about RM5 billion.
Problems of cross defaults have been cited as reasons for the bailout, which I wrote about here, where I asked if an RM1.1 billion bailout directly by the government was really necessary.
Closing non-performers
The bottom line is you can’t keep an unprofitable business with little or no prospects of turnaround alive indefinitely. If it is unlikely, in the opinion of professionals - not politicians - that a company is not viable, it should be closed.
Management is a big issue. If it is of high quality, there is a much better chance of success - like Petronas in the early days, and PNB which owned companies such as Malayan Banking and Sime Darby.
Sovereign fund Khazanah Nasional brought about positive changes in its investments through a transformation starting in 2005 and there are many well-managed large GLCs now. Most of the top 10 by market value are GLCs.
But there are literally thousands of GLCs, particularly those owned by state governments and statutory bodies, where patronage is particularly bad if not corruption itself. 
These are bleeding tonnes of money and many of them urgently need to be closed, but they are not. I suspect that’s because many who are guilty - whether by omission or commission - are politicians.
It is not just about setting key performance indicators. They first need to be in a business where there is a good chance of making a profit and then have competent and honest management to carry it through and a system of relentless, ruthless monitoring where non-performing companies are revamped and, if necessary, closed. 
Political will needed
Political appointments are a huge problem. Despite earlier commitments to reduce it, this has not been done.
If Anwar wants to improve GLCs, the first step is to have professional management throughout, not appoint politicians who already have generous MP salaries and allowances and other responsibilities.
Those under Petronas, Khazanah, PNB, and some where the Employees Provident Fund has an influence are better managed and monitored.
Those under Tabung Haji and the Armed Forces Fund have been quite bad. Many of the companies under these two may not be operationally sound and should be closed.
The worst are the state-owned companies and those by all manner of statutory bodies. Some states are far better than others, like Penang, Sarawak, and Selangor. Many of the others are dismal and must be axed.
The challenge is political. This Madani government is not prepared to do anything which causes even the slightest bit of pain to people and therefore it is nearly impossible for it to reform unprofitable companies.
The solutions are not difficult if there is political will and the willingness to bear some pain.
First, arrest the problem, and stop setting up new companies. Second, reassess them rapidly, get external auditors to do the job and get competent people to run the companies. Third, ruthlessly close down those that can’t be saved. That’s it. - Mkini
P GUNASEGARAM says with political will, anything is possible. Without it, nothing is.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.


Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

http://malaysiansmustknowthetruth.blogspot.com/2025/03/why-wait-to-close-loss-making-glcs.html

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
Take A Chapter From Trump Close Failed Glcs

Take A Chapter From Trump Close Failed Glcs

papar berkaitan - pada 26/3/2025 - jumlah : 115 hits
YOURSAY It s not rocket science just takes political will and guts Dr Kam Just take a chapter from the Donald Trump and Elon Musk playbook step one shut down 86 out of 217 federal agency subsidiaries that somehow managed to rack up RM2 81 b...
Sabah Tops Sara Aid List With Close To 500k Recipients

Sabah Tops Sara Aid List With Close To 500k Recipients

papar berkaitan - pada 31/3/2025 - jumlah : 98 hits
Sabah has the highest number of Rahmah Necessities Aid recipients said Domestic Trade and Cost of Living Minister Armizan Mohd Ali ADSArmizan said Sabahans accounted for nearly 500 000 recipients who received a total of more than RM492 mill...
Kuala Terengganu City Council Orders Malls Supermarkets To Close On First Day Of Raya

Kuala Terengganu City Council Orders Malls Supermarkets To Close On First Day Of Raya

papar berkaitan - pada 30/3/2025 - jumlah : 108 hits
People throng the Ramadan Bazaar at Dataran Shahbandar in Kuala Terengganu March 29 2025 Bernama picKUALA TERENGGANU March 30 All shopping complexes hypermarkets and supermarkets in areas under the jurisdiction of the Kuala Terengganu City ...
How Kongnara Built A Spam Free Free Money Community And Why It Works

How Kongnara Built A Spam Free Free Money Community And Why It Works

papar berkaitan - pada 11/3/2025 - jumlah : 105 hits
If you ve ever searched for free money online the chances are that you ve seen a lot of websites that make big promises but failing to deliver They re usually filled with spammy ads misleading advertising and unsatisfactory conditions that ...
Why Managing Obesity Matters For Kidney Health

Why Managing Obesity Matters For Kidney Health

papar berkaitan - pada 12/3/2025 - jumlah : 147 hits
Letter to EditorFOOD is central to life in Malaysia from nasi lemak to late night teh tarik However a health crisis looms over this vibrant culinary culture The National Health and Morbidity Survey 2023 reports that 54 4 of Malaysians are o...
Why Thursday Is Special For Abandoned Senior Citizens On Kl S Jalan Sayur

Why Thursday Is Special For Abandoned Senior Citizens On Kl S Jalan Sayur

papar berkaitan - pada 12/3/2025 - jumlah : 100 hits
A long queue forms on Jalan Sayur every Thursday with hundreds of elderly citizens waiting to receive food handouts the founder of Food4U started feeding abandoned senior citizens in 2015 He began by distributing bottles of water to the hom...
Better To Close Macc Than Probe Based On Public Opinion Azam Tells Critics

Better To Close Macc Than Probe Based On Public Opinion Azam Tells Critics

papar berkaitan - pada 28/3/2025 - jumlah : 171 hits
MACC chief commissioner Azam Baki has hit back at the agency s critics for trying to determine the direction of its investigations in high profile cases This came after certain quarters recently pushed for the graftbusters to include Sepute...
Only 4 Types Of Businesses In Kelantan Must Close On First Day Of Syawal

Only 4 Types Of Businesses In Kelantan Must Close On First Day Of Syawal

papar berkaitan - pada 27/3/2025 - jumlah : 110 hits
Kelantan exco Hilmi Abdullah said the state government had also given flexibility to supermarket owners to extend their operations until 11pm in the week before Hari Raya Aidilfitri KOTA BHARU The Kelantan government has clarified that only...
Metamask Security Warning

Overcoming The Funding Challenges

Aktiviti Majlis Penghargaan Kepada Warga Pakistan Nekad Terjun Sungai Tragedi Putra Heights Ppim 06 04 2025

Harga Pasaran Makin Naik Wanita Ni Selamba Beli Emas Bernilai Rm2 5 Juta

Remaja Perempuan Dibunuh Bekas Kekasih Anak Ahli Politik Berpengaruh

Sometimes Medicine Needed Trump On Market Reaction To Tariffs

Menu Hari Raya 2025

House Of The Yellow Ip Leo Romano A Contemporary Tribute To Nature In Brazil


echo '';
Info Dan Sinopsis Drama Berepisod Dendam Seorang Madu Slot Tiara Astro Prima

10 Fakta Biodata Amira Othman Yang Digosip Dengan Fattah Amin Penyanyi Lagu Bila Nak Kahwin

5 Tips Macam Mana Nak Ajak Orang Kita Suka Dating Dengan Kita

Info Dan Sinopsis Drama Berepisod Keluarga Itu Slot Lestary TV3

Bolehkah Manusia Transgender Mencapai Klimaks Selepas Bertukar


Mihun Goreng

Why Every Homeowner In Katoomba Needs A Reliable Electrician On Speed Dial

2 Wanita Bunuh Bomoh Yang Mengugut Sebar Video Peribadi

Diva Aa Bising Pasal Pelanggan Drive Thru Mcdonald S Reaksi Nampak Pelbagai

Resepi Kari Ayam Perap Nenek Dulu Tanya Mak Kenapa Kari

Prapesan Siri Realme 14 Bermula Deposit Serendah Rm20